100% Commission Vs. The Classic 9 – 5
Working a 100% commission job or the classic 9 – 5. Each job is admirable but everyone is different. Many people who work 9- 5 may not know what is to work for a job that only pays out commissions. That’s why were are going to briefly talk about what makes each job type attractive. Who knows. Maybe one of you will actually want to try out a different work environment. You’ll never know what you like until you’ve tried a bunch of different things, right?
Why Would Anyone Want A 100% Commission Job?
Contrary to the typical 9 – 5, there are those in this world who prefer to work a bit differently. Many of those people choose jobs that pay out 100% commission. I’ve met many people who scoff whenever they hear about a job that pays 100% commission. However, let’s look at the facts and see if it really is something to scoff at! It’s true that these jobs tend to lack stability. When I was working a 100% commission job it was one of the hardest environments that I ever had to work in. However, I can say that I was also the most productive. Why was I more productive you may ask? It’s due to the fact that the environment was extremely cutthroat. Since you’re 100% commission, your savings can start to dwindle due to the lack of income coming in.
Although, if you hustle, you can earn much more than you ever would in a 9 – 5! Commission structures tend to vary. While I was training to be a financial advisor, we would earn a percentage based on the value of our client’s total assets! Therefore, signing a client who had $100,000 in assets (our minimum) would earn us 3% of that sum! It sound’s pretty good but it’s not as easy as it seems. Many workplaces that are 100% commission based don’t have warm leads! I, for example, had to cold call straight off of a phone directory. Sounds pretty antiquated but it was mildly effective. However, if you can manage to persuade someone to buy whatever service or product you’re selling, you’ll be rolling in the monies.
I would like to reiterate that since the environment is very cutthroat, there is a lot of stress. You’ll have to worry about earning enough money to keep up with your lifestyle and retain job security. This can be a bit much for some people. However, those who really focus and put their mind to it can earn a VERY healthy living through commission only jobs! Just watch the video above to get a better understanding of the mindset it takes to work in a commission based role!
Why Would Anyone Want A 9 – 5?
This is, by far, the most popular job structure that people tend to go for. The job doesn’t necessarily need to range from 9 am – 5 pm. It can be any job that pays you hourly for a set amount of time. There are many jobs out there that have this particular structure. One of the main reasons people are drawn towards this way of work is because it’s extremely secure. You’re trading your time for money. This leads to a certain degree of stability and comfort. This is also true if you’re a salaried worker. This means that you can work about or below your 40 hour work week and still get paid the same amount every two weeks!
Most beginner jobs are like this and they are typically easier to get because they are in abundance. However, the likelihood of acquiring a job will always depend on a number of factors. Jobs that are within the 9 – 5 structure tend to be based on performance. If your job is customer facing your job security may depend on how well you interact with customers and the accuracy f your completed tasks. If you’re a sales associate, you may need to garner a certain amount of sales to meet the store’s quota.
Contrasting commission based jobs, I’ve found the environment to be much more relaxed. However, this may change as you move up the corporate ladder. A large disadvantage is that your earnings are capped. This means the only way that you can make more money is if you work more hours. The degree to which you work in terms of hustle may not increase your earnings. This deters a lot of people because you can outperform the person next to you but all you’ll get is a pat on the back. Typically, the only way to make more money is to either get a raise or promoted! With promotions, you acquire more money and responsibilities but can also take a very long time.
What Would I Choose?
For me personally, I enjoy the structure and stability of a 9 – 5. This has to do with a number of factors. One, I don’t fare well when under a lot of pressure. Furthermore, with any job that comes with earning a commission, I strongly disliked the management. The is anecdotal but from my experience, the managers tend to be on your case 24/7. This is because the amount they get paid is directly correlated to how well you perform. However, it’s best to find some sort of middle ground in terms of pay and structure.
Many jobs offer salary + commission. This can be extremely lucrative because you’re receiving money for your time. Furthermore, you’re getting rewarded for your performance which means that you won’t remain stagnant. Another reason why I love 9 – 5 as appose to 100% commission jobs is because they offer benefits. Benefits are extremely useful and can be used for a multitude of things. Although I prefer being paid hourly, I must say that it reduces my work ethic. This is a problem I have because I know that I’ll only be paid a certain amount so I may not go above and beyond in certain instances. For many of the dead-end jobs that I’ve worked at, there was no incentive to do well.
Final Words
To conclude this short article, both avenues have their clear pros and cons. Many people may find problems with their respective paths. Therefore, it may be advantageous to acquire a job that rewards you on your performance but still receive a steady paycheck. Regardless of the path you choose, to be successful you just need to work hard, keep your eye on the ball and make the higher-ups happy. What makes an employee happy isn’t always the money but the environment as well. Therefore, seek out jobs that encapsulate every aspect of an enjoyable workplace. We will end off with a podcast where Matt Manero compares the two job types!
Shameed is just a man on a mission to help those around him gain financial success. Obsessed with writing about all things finance, this GTA native is constantly learning and sharing his experiences with others.
