What are the disadvantages of commission jobs?

Answer

The disadvantage of a straight commission position is really whether there is potential in the position. Many companies are ready to hire anyone for free but you need to know your skills, need for income, and the ability to wait it out till you catch that "big fish" (which is a high paying commission on a new account).

I have been on straight commission for years and the income is up and down. Most people like a steady income, but if your bills are low and the position has good potential then it might be right for you.

One other very important thing to remember. If you accept a straight commission position and you have independent contractor status you will have limited rights in collecting commissions owed if you have a falling out between you and your boss. This has happened to me.

In the State of Texas, if you are straight commission but an employee then you can request that the State steps in to help mediate your contract so you will have someone to help you collect any commissions owed.

Either one, an independent contractor or employee both need a contract in place spelling out your payment arrangements and needs to have language that addresses the possibility of future changes that could impact your leads, clients, etc.

First answer by ID1287087167. Last edit by ID1287087167. Question popularity: 19 [recommend question]