The "Commission Only Doesn't Work" Myth

I can't tell you the number of articles I've read recently claiming how commission only employees, and the employers who hire them, are doomed to fail.  I also can't tell you all the reasons these articles are wrong... I just don't have enough paper.

I'll start with this; the articles are right to a very limited extent. There are many people who can not and will not succeed in a commission only job. I grew up in a small town where security and hard work were virtues. Growing up, we all gravitated towards secure, decent paying jobs.  For example, many of us (including myself) pursued government jobs such as firefighting.  In my nine year stent as a firefighter for a large department, I enjoyed the security of knowing exactly how much money I would make regardless of my performance.  Being a firefighter was very rewarding in many other ways too, but in many instances, salaried positions breed mediocrity and complacency. However, over the years I began to notice something that had somehow been a secret to me.

After leaving my small hometown, I became friends with young professionals who, although my age, seemed to have substantially more income than I did. I soon realized that they were in the "commission only" sales business.  My immediate reaction was that I may not make as much, but I am secure, while their financial situation was completely dependent upon luck.

It took several years of being in a relationship with these new friends for me to realize one simple truth; these men were not lucky, they chose to be in a profession that rewards them based on their effort and performance.  These rewards weren't "guaranteed" like mine had been as a firefighter, but they were uncapped and extremely substantial.  I also noticed that they didn't have to spend twenty four hour shifts away from their families; instead, they built their career around their families.  However, I still clung to my security blanket no matter how green the grass looked on the other side.  That is, until my best friend showed me that if I took the time and learned to be good at my job, I would always have security. His reasoning was that if you become proficient at sales and are confident in your abilities, you will always be able to make money. Not to mention the fact that my friends had far more financial "security" than I ever had because they were able to build wealth while acquiring an income (something I could never do with my salary cap).

In short, commission only jobs really aren't for everyone in every situation. However; for those who are good at what they do, a career that rewards excellence is a great fit.  In fact, look how the majority of the world's wealthiest people achieved their wealth.  By and large, wealthy people are people who gravitated towards jobs that pay based on performance. Good employers are willing to pay great money for results.

For some people, a base salary is a fantastic opportunity. The security and predictability it offers fits their personality well.  For people who want to separate themselves by proving their worth, have the ability to build wealth, and create their own schedules, then commissions are definitely the way to go. However; before you consider a commission only job, you have to decide which person you are.