Insights on commission paying jobs?

[Pat in Speedway]

So here's the story. I've never in my 50 years had a commission paying job. A friend of mine has been a successful RV salesman for 15+ years (I bought two trailers from him over the years). He's been telling me I need to get in the game and get on at the RV dealership where he works. I've helped out at a few RV shows for them and another dealer over the last 5 years, and have a couple sales to show for it. I started a website in 2011 that covers the small trailer segment of the RV industry that I maintain in my spare time from my regular hourly, non-RV related full time job. So based on all that, my friend tells me I've got the knowledge of the industry.

Honestly giving up the security of an hourly job that I don't necessarily care for to go for a commission paying job with no guarantee of any income scares the crap out of me. Based on some earning potential he said, I could look at more than 100% increase in pay if I did the work in a couple of years, and even get into six figures. For those of you who work commission, or used to work commission and went back to a salaried job, any insights you can offer, good or bad? My head is all over the place thinking about this. Thanks, I'll hang up and listen.

 

[Wolf359]

Been a real estate broker for 10+ years. The pay is variable but it doesn't bother me, I don't spend that much money and I have pretty substantial savings from working in corporate for years. The toughest part in real estate was probably getting started, it was slow initially, but once you build up a client base, things improved. But on the flip side, I know lots of people who got into it that got out because they needed the regular paycheck. If you have the savings and can tough it out during the slow times, you'll probably be ok.

 

[Mr Nice]

When economy is good you could make a nice living, when economy slows down..... few will be buying an RV.

Stay at boring yet stable job you're currently at.

 

[Pat in Speedway]

Originally Posted by Mr Nice
When economy is good you could make a nice living, when economy slows down..... few will be buying an RV.

Stay at boring yet stable job you're currently at.


Interestingly enough, these numbers just came out today.

 

[iahawk]

Sales success is about more than just good industry knowledge. Do you have thick skin? Are you easily frustrated? Do you have great communication skills and 'people skills'? Are you self motivated and have a killer drive to succeed? Can you handle ups and downs in your income?

Sales isn't for everybody...lots of people give it a try only to quickly wash out..frustrated by dealing with the public and the sometimes long hours required at a commissioned sales job. Sales can be extremely fulfilling and lucrative...and it can also cause you unbelievable stress and grief.

Most people 'know' if they are right for a sales job...you just feel it. I've been in sales my entire adult life and love it (occasionally hate it..but love it more).

RV sales?...not sure that's where I'd want to start my sales career...I'm guessing that the potential clientele is slightly older and has plenty of free time to 'shop' for a new RV in a multi state area! Back in my car sales days that was the typical Cadillac or Buick buyer...a retired guy with nothing but time on his hands to shop and shop and shop....

 

[levi]

Random thoughts.

Would never recommend anyone to go into commission only sales. Have done many stints in my 60+ years on the planet. It IS either feast or famine, seldom much in between.

As stated above, most don't last, constant turnover of sales people. And it doesn't matter what the product is - cars, RV's, insurance, various in-home sales, etc.

The owners/sales managers love you when you're making the sales, then you're just another dime-a-dozen salesman when you hit a dry spell. Typically management doesn't have to fire anyone.
They just get discouraged and quit.

Whatever you decide, I wish you the very best. But I can virtually promise you, it will be much more challenging than you imagined.

 

[Andrew1972]

Try it part time and see if its for you. Sales not requiring education takes special talent to be effective and its not always product knowledge that matters at all.

 

[dblshock]

I sold up to $400k per month, was paid 28 % of the profit + expenses generally, the challenge was getting to the truth of profit...tricks like 'loads' discounts ect all diminish your pay.

 

[dblshock]

great job if your gifted..had my first +$100k yr. in '87 and recently many +$40k mo. til i retracted to semi driving 4 days a week, moved to my recreational summer home year round...less pressure by far..good move for an older salesman.

 

[02SE]

It's sort of like owning your own business, but with less risk and headaches on your part involved.

There might be the potential to make more money than your salaried job, but there's no guarantee you will. In most instances a top-earning sales man or woman will have worked hard to earn their high commission.

Back in the day my top salesman made a very comfortable living, and I was always happy to pay him his commission.

 

[StevieC]

My job is a base + commission + car allowance + gas card (because I'm on the road everyday) and I have been setup like this with various employers for about a decade now and I wouldn't go back to a standard salary / hourly position because the earning potential here is far better and I always have a new vehicle paid for by my employer including gas to go with it. I also like not being in the office everyday with someone breathing over me.

The key is to find a commission sales job that doesn't experience a lot of up's and downs and that has a good amount of stability to it and where there is a strong need for what you are selling. Eg: Chemical disinfectants to hospitals or big huge industrial machines to busy manufacturing shops wearing them out decade after decade.

The position I have now is quite stable with steady commissions and then some really great times of the year where commissions will double and triple for a few months at a time. I gear myself always to live off my base and think of the commission as "extra" and direct that to savings and discretionary spending while the base takes care of recurring living expenses. I live well and never worry.

RV's in my opinion is not a good area to get into because it's a discretionary spending category for consumers so it will experience up's/down's with the economy which could be worse than your already stable income and you need a big base of folks to sell to because they aren't buying from you every month.

 

[dblshock]

ya I was tied to the residential housing market for most of my career and we all know it had some severe challenges like early eighties and 07-12 housing depression but you must learn to adapt and get into related markets or wither away...they say there's always a market somewhere.

 

[jeepman3071]

Originally Posted by iahawk
Sales success is about more than just good industry knowledge. Do you have thick skin? Are you easily frustrated? Do you have great communication skills and 'people skills'? Are you self motivated and have a killer drive to succeed? Can you handle ups and downs in your income?

Sales isn't for everybody...lots of people give it a try only to quickly wash out..frustrated by dealing with the public and the sometimes long hours required at a commissioned sales job. Sales can be extremely fulfilling and lucrative...and it can also cause you unbelievable stress and grief.

Most people 'know' if they are right for a sales job...you just feel it. I've been in sales my entire adult life and love it (occasionally hate it..but love it more).

RV sales?...not sure that's where I'd want to start my sales career...I'm guessing that the potential clientele is slightly older and has plenty of free time to 'shop' for a new RV in a multi state area! Back in my car sales days that was the typical Cadillac or Buick buyer...a retired guy with nothing but time on his hands to shop and shop and shop....


This^^^

One important thing about sales is do you feel comfortable trying to sell someone something they really don't need? For example convincing someone they need the 40' RV when the 20' would more than exceed their needs? A lot of the game is being able to upsell.