Commission sales or salary?
Commission sales or salary?
This question is for my boyfriend. He got laid off last year then couldn't find a job for almost 10 months. He needed the money so applied everywhere. He finally got this job as a car salesman 2 months ago. He is really good at it. He made 7k his first month then 11k last month. One company called him and offered a job for 65k salary plus benefits. He is not sure if he wants to go back to his old field. I want him to go back because the money is stable. Would you tell your wife/girlfriend or boyfriend/husband to take this salary job?
Re: Commission sales or salary?
Have him compare the two comp plans.
How many cars can he realistically expect to sell at both places and factor what the final earnings potential is. With the place that's offering him a good base, is the product as hot and easy to sell?
How many cars can he realistically expect to sell at both places and factor what the final earnings potential is. With the place that's offering him a good base, is the product as hot and easy to sell?
Re: Commission sales or salary?
If he's that good can he sell cars on the weekends and get the salary job? It won't be as much but he can still be getting some commission
Re: Commission sales or salary?
Not nearly enough information, IMO. Does he like selling cars? He doesn't like his old field. It looks like he'll easily make more money as a car salesman, even with the ups and downs.
Re: Commission sales or salary?
In sales, everybody is ultimately on commission.
If a salaried sales person doesn't sell enough to pay his/her way, they get fired.
Meanwhile, the top producers earn enough to pay their own salaries & benefits plus they subsidize the earnings of the washouts.
If a salaried sales person doesn't sell enough to pay his/her way, they get fired.
Meanwhile, the top producers earn enough to pay their own salaries & benefits plus they subsidize the earnings of the washouts.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers
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Re: Commission sales or salary?
I'd do more research on the Car Salesman side. I've heard you can't make the money you used to and things could get worse (with on-line quotes, more informed consumers only willing to pay slightly above cost, etc. the days of the big fat margins are going by the way-side). There has been a lot of turnover. Now - money is made more on volumes than individual deals from what I have heard. However- I'm no expert.
On the flip side - I truly believe in the long run you should go for the career where you are happy. If he LOVES selling cars he is more likely to be successful there than going back to a salaried $65K/year job where he isn't happy.
On the flip side - I truly believe in the long run you should go for the career where you are happy. If he LOVES selling cars he is more likely to be successful there than going back to a salaried $65K/year job where he isn't happy.
Re: Commission sales or salary?
He likes selling cars. He can not do it part time. He sales certified pre-owned cars. The job is 100% commission. The new job will be in an office setting with salary.
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Re: Commission sales or salary?
Well gee, if he loves sales and dislikes his old field, then he should probably stick with sales.
Who knows, he may want to do sales in some other industry.
Who knows, he may want to do sales in some other industry.
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Re: Commission sales or salary?
There are many careers where sales and negotiation experience are useful. Even in my IT job I need to negotiate with vendors periodically. If he likes selling cars and is making better money at it (with more risk) a 1-2 year stint there won't hurt him. It's also nice to show some loyalty to the place that hired him and not end up with a 2-month job on the resume.
+1 to go with what he likes.
He was unemployed, got a job, and is now successful at it. Be happy with that for a while.
+1 to go with what he likes.
He was unemployed, got a job, and is now successful at it. Be happy with that for a while.
Re: Commission sales or salary?
Is the 65k job still sales?
I'm in sales, while I have a small base, 80% of my income is commission or bonuses. There is probably a real possibility of having a month of real or next to no income in something like car sales, but then you can also get huge paychecks like he did last month. As others have stated, if the 65k job is still sales, and he does not perform, it will not be pretty either.
I'm in sales, while I have a small base, 80% of my income is commission or bonuses. There is probably a real possibility of having a month of real or next to no income in something like car sales, but then you can also get huge paychecks like he did last month. As others have stated, if the 65k job is still sales, and he does not perform, it will not be pretty either.
Re: Commission sales or salary?
If he enjoys selling cars and has already produced $7,000 and $11,000 in monthly commissions, if that income is sustainable, I'd say keep selling cars and invest a good portion of the $$.member wrote:He likes selling cars. He can not do it part time. He sales certified pre-owned cars. The job is 100% commission. The new job will be in an office setting with salary.
Congratulations to him. Make hay while the sun shines.
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Re: Commission sales or salary?
Stable Job and Salary > Sales
Just IMO. I was good at sales but it didn't pay as much as salary so I took the salary gig and it was a great move personally.
Good Luck,
AceJ
Just IMO. I was good at sales but it didn't pay as much as salary so I took the salary gig and it was a great move personally.
Good Luck,
AceJ
Re: Commission sales or salary?
Office job on a salary vs. 100% commission sales position are typically 2 entirely different worlds.
The person in 1 better suited for the other knows or will soon know and start looking for a change.
It takes all kinds.
The person in 1 better suited for the other knows or will soon know and start looking for a change.
It takes all kinds.
Re: Commission sales or salary?
If I were in his shoes, I'd stick with selling cars. To make that kind of money as someone new to the car business means one is pretty darn good at it. Many newbie salespeople do horribly and wash out.
Only downfall is that I imagine the benefits at the car dealership aren't as good. Still, he could always get promoted to a salaried management job at the dealership down the road.
Only downfall is that I imagine the benefits at the car dealership aren't as good. Still, he could always get promoted to a salaried management job at the dealership down the road.
Re: Commission sales or salary?
Probably a pretty good sales gig for him. Used cars do not have the internet information that new cars have. Thus, it is easier to make margin.
When the economy turns south and car sales tank will be difficult. However, if he is smart he will live off of a portion of his income and bank the rest.
Stick with what he enjoys. You are his girlfriend and not his wife...when you are promoted then you might have a little more authority in the decision.
Ed
When the economy turns south and car sales tank will be difficult. However, if he is smart he will live off of a portion of his income and bank the rest.
Stick with what he enjoys. You are his girlfriend and not his wife...when you are promoted then you might have a little more authority in the decision.
Ed
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Re: Commission sales or salary?
IMO 100% commission sales (you eat what you kill) is the epitome of the "risk/reward" ratio - offering motivated individuals the opportunity to financially surpass salaried employees. The sales profession is not for the majority of people, since there is typically more rejection than success, which most people can't handle. That your boyfriend has demonstrated success so early, AND he enjoys it, IMO he should stay with it for a while. Without my knowing the commission structure of used v. new, his success can present him better opportunities in the future, possibly upgrading to a premium line (Porsche, MacLaren, MB, etc). And not only automotive. He obviously is successful communicating with his sales prospects, and selling is selling. There is always a need for successful salespeople, and successful sales people make excellent incomes.