Working on "Commission"

[SARGE]

A bud wants me to go into the insurance business (AFLAC). I've always hesitated on commission type jobs - insurance, real estate, sales, as one never knows the income to expect month-to-month. It seems more comfortable having a salary or hourly job whereby one knows what to expect, although the commission jobs can reap more $$ but inconsistent.

Opinions or experience, please.

[CaptTuna]

If you are a good salesman, go for it. My sister sells insurance and works VERY hard at it. It may seem that everyone "needs" insurance, but leads are hard to find.

[mbossman2]

the best type of commission jobs are the "base plus" plans...you get X per year and then on top you get commission.

As to insurnace/financial etc type sales, these are what as referred to as declining residual sales...for example the commission for a 1 year contract is $120, you will get that in $60 in month 1, 30 in month 2, 15 in month 3, on down until you hit 0, this makes income a little easier and incents the rep to get longer term contracts/commitments from the customer, because the residual period is longer the longer the commitment.

make no mistake, commission based sales (especially pure commission) is not for everyone. sales like that can be highly lucrative, but they can also be a disaster if its not.

[tireman]

Not too sure about selling insurance, but, I have worked in a "commission only" job for over 11 years. There are good months and bad months. Last year, made a little over 70K, but one month I brought home less than 200.00. Made up for it the next month by bringing home close to 7K. When I first started in this field (service advisor for a very large auto repair facility), I had the choice of salary or commission. I chose the salary side until I saw the potential. I took home a total of two months of the salary option and then switched to the commission side....ended up much better. But once again, never had any experience in the insurance field.

tireman

[roomwithamoose]

Commission makes me nervous. I'm in sales, and my company doesn't do commision, although the majority of companies in my industry do. I've bought stuff from salesmen on commision before, and it always feels like they're trying to bone me. I do not consider myself a salesperson, I'm just doing this for the security of a monthly check. If this were a commision job, I wouldn't have taken it. I'd rather know what I'm going to get every month, rather than take the chance of not meeting my payments sometimes. Too scary for me.

[doctorgonzo]

If you consider yourself to be a good salesperson, then go for it. Otherwise, you should probably stay away. Being in sales requires a lot of skills that some people don't have; I definitely could never have a sales position. But if you think you can seal deals, then maybe you should give it a try.

[Nuclear Krusader]

I have worked on commission before. I wouldn't recommend it, unless you are the wisests of salesmen.

[Panama Red]

I've been in sales for nearly 30 years. Most of it has been involved with Industrial Products and Services. Currently I'm on straight salary but I've worked on a salary plus commission basis before too. Never did commission only. I did a stint selling life and health insurance for Metropolitan back in '75. They provided me with some 'leads' which included 'reviews' of existing policy holders to keep their level of insurance in line with their personal income growth and family changes. I was expected to provide a list of all the people I knew or had met in order to develop a client base of my own. The real secret I discovered is developing relationships with people who have influence over a group of others. "Center of Influence" we called them. Often times you need to join clubs, volunteer groups and participate in golf leagues, etc in order to come in contact with these people and develop friendships before they will trust you. If you already have a large group of friends that you can call on and you have some influence over them, then you would have an advantage in kick starting a commission based program. If not, you may struggle for a while and put in long hours to reach a point where people begin to call you for your services as opposed to you having to continually look for new clients. Most commission only sales people stay in the same field even when they change employers because of all the time and effort they invest in the development of a solid client base. Good luck on whatever you chose, Sarge.

[raftero]

if you are a good salesman, have a good product, and most of all are self motivated then you can make good money. i had a friend that met the first two but when he he sold a few policies he felt rich and went to the lake till he spent it all, finally had to get a job where he had to be there in order to keep his bills paid. personally i couldn't sell ice in hell.

[Strider]

I've never had a commision based job, but all I know if I did I would be living in somekind of shelter for I would be a terrible salesperson.

[mbossman2]

sales is really just a problem solving career.

Identify the customers problem (whether they realize the problem or not)
offer a solution that minimizes or eliminates the problem.

The problem most people have is that they have a difficult time looking beyond the obvious. every person or business has problems, you just need to ferret them out.

Please note: I am not saying that you should CREATE problems to sell but identify the issues, point out how you can save/make them money using your solution and you are in like flynn.

[Panama Red]

Originally Posted by mbossman2 sales is really just a problem solving career. Identify the customers problem (whether they realize the problem or not) offer a solution that minimizes or eliminates the problem. The problem most people have is that they have a difficult time looking beyond the obvious. every person or business has problems, you just need to ferret them out. Please note: I am not saying that you should CREATE problems to sell but identify the issues, point out how you can save/make them money using your solution and you are in like flynn.

Well said, mbossman2!