Top 7 Commission-Based Sales Jobs

Commission-based sales jobs can be lucrative if you have communication skills, the ability to follow up and close a contract, and marketing skills.

How does the commission payment work? Employers have many different types of compensation for employees, including hourly wages, salaries, bonuses, fair pay, living allowances, and commissions.

Compensation commission systems reward employees by selling products directly to consumers or other businesses.

The amount of commission received is based on meeting sales agreements, such as meeting or exceeding quota terms.

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Types Of Commissions

The employer decides if the commission may be paid in excess of the basic salary, paid as revenue compared to future commission earnings, or paid as a bonus.

  • The Straight Commission is a form of pure commission in which employees receive remuneration based on their sales.
  • The Draw Against Future Commission provides employees with a deduction from the commission once they have received it.
  • The Salary Plus Commission plan includes establishing a fixed salary for trader employees and increasing commission revenue based on manufactured sales.
  • The Salary Plus Bonus commission arrangements include the establishment of a fixed wage which adds to the amount of money when employees meet certain sales targets.
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How To Calculate The Commission

There are many different frameworks that employers use as a basis for calculating commissions.

Complete Sales Commission

In its simplest form, the commission can be based on the total sales volume. For example, a real estate agent sells a house and receives 1.5% of the sale price as commission.

Profit Percentage

The commission can be based on the percentage of profit on something exceeding the employer’s cost. For example, if a car costs the buyer $ 20,000, the car dealer may earn 5% of the final sale price over $ 20,000.

Flexible Commission

Flexible commission schemes involve different levels of commission at different sales levels or in achieving specific objectives. For example, a seller may receive a 3% commission on the first $ 100,000 of a sale, 5% on sales from $ 100,000– $ 200,000, and 7% on all sales exceeding $ 200,000.

Territory Sales Commission

The local or group sales commission involves rewarding all vendors if the group meets or exceeds the terms of sale in their area.

Commission-Based Sales Jobs

According to BLS’s statistics, below are the commission-based sales activities that are making the most money since May 2019.

1. Marketing Engineers

Marketing engineers sell highly technologically advanced products or services to businesses. They must have scientific and technical skills to understand the products’ functions and explain those functions to the customers.

They can also assist in researching and developing these products and help their customers solve problems after installation.

Salary: Median salary for sales engineers in May 2019 was $ 103,900, with the lowest 10% earning less than $ 59,180 each year and the top 10% earning more than $ 174,270 annually. Top-notch sales are paid for communications, computer programming, and electronics market segments.

Job Outlook: Sales engineers are expected to grow by 6% between 2018 and 2028. This is almost as fast as the average of all jobs.

Employment growth may be strengthened by developers selling computer software and hardware. Strong industrial growth is also expected in the development of computer systems and related services, with employment expected to increase by 24% between 2018 and 2028.

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2. Sales Representatives

Sales representatives sell products to government agencies and private companies.

Representatives of supermarkets and producers may identify potential customers, help existing customers understand and select products, negotiate prices, and arrange sales contracts, among other activities.

They may work for several organizations or just one manufacturer.

Salary: The average salary for most sales representatives, excluding those selling technology and science products, was $ 59,930 in May 2019.

The lowest 10 percent earners make less than $ 30,530 a year, while the top 10% earn more, up to $ 125,300 annually.

Retailers selling technology products have made the highest earnings in this category, with an average income of $ 81,020 per year.

Job Outlook: Overall recruitment of retailers and representatives is expected to grow by 2% between 2018 and 2028. This is a slower pace than the average of all activities.

3. Securities, Assets, And Financial Services Sales Agents

Securities, commodities, and sales agencies of financial services buy and sell securities (e.g., stocks, bonds) and commodities (e.g., gold, corn). They monitor financial markets, advise companies, and sell securities to individual buyers.

Salary: The average annual income for securities, assets, and financial services sales agents was $ 62,270 in May 2019. The lowest 10% of earners make less than $ 35,320 annually, and the top 10 earn more than $ 204,130 annually.

Job Outlook: The hiring of securities and financial services sales agents is expected to grow by 4% between 2018 and 2028. This is almost as fast as the average of all activities.

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4. Advertising Agent

Also called representatives of the advertising industry, these employees sell online advertising space, broadcast, and print media forums to businesses and individuals.

Their job responsibilities include communicating with potential customers, maintaining customer accounts, and making sales presentations.

Salary: The average annual salary of advertising agents was $ 53,310 in May 2019. The lowest 10% of earners make less than $ 25,390 annually, and the top 10% earn more than $ 118,300 annually.

Job Outlook: Employment of advertising agents is expected to decline by 2% between 2018 and 2028. However, the best prospects are in the digital market, where advertising focuses on online videos, search engines, and mobile content targeted at smartphones or tablets.

5. Insurance Sales Agent

Insurance brokers sell one or more types of insurance, for example, life, property, health, etc. They consult with potential customers, explain the features of various policies, and help customers choose programs. They also manage policy updates and keep records.

Salary: The average annual salary of insurance brokers was $ 50,940 in May 2019. The lowest 10% of earners make less than $ 28,000 a year, and the top 10% earn more than $ 125,500 a year.

Job Outlook: According to BLS, the number of insurance sales agent jobs should expect positive growth of 10% between 2018 and 2028.

The Bureau of Labor Statistics predicts that the demand for private agencies will grow exponentially as many insurance companies choose to use brokerages.

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6. Real Estate & Retailers

Real estate agents and sellers perform similar functions, helping clients to purchase, sell, and rent a property.

However, real estate agents are licensed to manage their businesses locally, while real estate agents work for sellers, usually on a contract basis.

Salary: The average annual income of real estate agents was $ 59,720 in May 2019. The lowest 10% of earners make less than $ 23,600 annually, while the top 10% earn more than $ 178,720 annually.

Job Outlook: The employment of real estate agents is expected to grow by 7% between 2018 and 2028. Job prospects are good in times of economic growth and low-interest rates.

7. Travel Agents

Travel agents arrange, book, and sell trips to individuals and groups. They may book travel, accommodation, and activities, including group and day trips. Usually, they also plan alternatives where plans change during the trip.

Salary: The average annual salary for travel agents was $ 40,660 in May 2019. The lowest 10% of earners make less than $ 23,660 a year, and the top 10% earn more than $ 69,420 yearly.

Job Outlook: Bureau of Labor Statistics predicts that employees or travel agents to reduce by 6% between 2018 and 2028.

However, as current travel professionals reach retirement age, additional opportunities may open up for new agents, especially those focused on a niche such as corporate travel.


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