Went for a job interview a few days ago with a company that has less than 30 employees. Completed my job interview with business owner, who seemed very presentable and ambitious. They explained that they had big ideas to expand the business and would be keen to “bring up” those that helped the business in its beginning phases.
I’ve since learned that the industry is ultra-competitive. Yet, this guy seems to be doing it right, investing in software and service, etc. Has stellar reviews on Google. I also know that I’d be an asset to a growing company. I’ve got several years in customer-facing roles as well as leadership roles and am looking to really get my head down to improve my family’s situation.
The interview was for the position of Sales Rep, which I was interested in particularly for the commission (I’m interested in a job where my hard work is monetarily rewarded). However, I’ve since learned that the commission structure in place is 1% of sales up to £60,000. 2% between £60,000-£100,000 and 3% on anything over £100,000.
So just as an example, if I sold £120,000 in one month, I’d get £600 from the 1%, £800 from the 2%, and £600 from the 20,000 over £100,000 – So a total monthly commission of £2,000.£2,000 seems like a nice little bonus monthly, but the target is only at around £80,000, and so I’d imagine you’d truly be working hard to get such a bonus.
Everything considered, what would your thoughts be? As I’m a little stuck on the seemingly ungenerous commission scheme almost contradicting what I’m being told about those joining early being rewarded justly. Seems a little disingenuous? Or am I expecting too much?
Hope I’ve included enough information for some advice as I’m a little mind boggled with this one …
EDIT: Thanks all for your input. There is a base salary that is in line with entry-level positions in the field. For my area, that’s between 20-25k – I’m not asking for you to make the decision for me, so much as I’m asking for advice from others who might know more. I am interested in a career in sales. I kind of need to get into full-time work sooner rather than later, my current job is agency-based and hours aren’t guaranteed, making life a little challenging.
Perhaps I should get a feel of how the deals go down and how much input I’d have in them before deciding if the commission is fair or not, and then in time look at discussing an improved commission structure if it’s not?
6 comments
Honestly it’s hard to say. There are people in those roles for a reason, they can handle the pressure and do it well. But from what I know, employers like that are mainly Employers of Churn, meaning that there is a high turn over.
I worked a commission based job for about 2 years, and yes you can earn a decent amount but I found that it was never 100% on me, outside factors can and will effect your pay. For instance the market can change, people’s minds can change last minute and there’s nothing you can do.
If you need the job or really want it, then go for it. No one else can really help you as we’re not in your position.
Is the job commission only or do you have a salary? How does it compare to what you currently earn? Is sales a career you’re interested in? There’s lots of information missing.
I don’t work anything like that, but from friends that do are always changing jobs. It’s stressful when things go wrong that are nothing to do with your performance.
Sales rep for 10+ years.
It doesn’t sound like there is a commission structure tied to the target, which is… unique.
So my advice is ignore the target, and try to understand how achievable it is to earn a decent commission.
If you are literally kicking deals over the line without putting any real work in (building relationships from the ground up, working hard to structure the deal and engage stakeholders etc.) I would say that, depending on your basic salary, could be a good move?
What’s the basic?
Are you working with an installed account base?
There are unknowns here which makes it hard to judge.
For context: I just closed a 3.7M deal in Q1 for which I’ll get a 45k bonus which is ~1% of the deal size. All the hardwork to book that customer happened before I arrived, I just account managed it. I’d say that’s a pretty fair comp.
It’s not terrible if the salary is at market rate, but I’d negotiate it up if possible. You should also be asking questions about the % of reps who are hitting the target quota every month, should give you an idea of whether it’s attainable.
My general advice is to stay the hell away from small owner-managed businesses. They can quickly become toxic, particularly if they grow beyond the founder’s capabilities and they cannot give up power by bringing in external experts to help run the business.