Sales is arguably one of the best professions in the world, that is if you ask any salesman of course. And why not? The best sales people in any given industry or any given company earn tens, dozens, and even hundreds of times more than that of a regular employee. What a regular employee earns in a year, a top earning sales person can earn in just a week, or less. However, it can be said that not everyone is cut out to be a sales person. There are actually many sales people that struggle from one sale to the next. They just keep on working hard knowing that in due time, all their hard work will pay off. Most of them rely on sales commission loans to help them get by while waiting for their next commission check to arrive.
It’s good that we first understand what commission is and how it really works. Simply put, a sales commission is what sales professionals earn in direct proportion to every sale they make. Sale commission has different rates that may depend on the company, product, and industry. The more sales that you get to close, the more commissions that you can earn and there’s no limit for almost all companies. It’s simple really, close a sale, get a commission. This is why sales professionals are motivated to make more sales. Sales commission is a great way for companies to align their sales force with their own goals. A worker that is paid by the hour earns the same amount as a worker that may work twice as hard. With the commission system, that worker that works hardest earns the biggest. It’s a win-win situation for everyone when more sales are closed. The company benefits because of bigger revenue and the sales professionals enjoy bigger income on their part.
All types of commission involve paying sales people when they make a sale. The commission rates however vary in computation. The value of the item that is sold determines that straight commission for the item sold. Let’s take the real estate industry for example. A real estate agent may earn 3 percent commission on the value of every or any home that he manages to sell. With this setup, the real estate agent will strive to sell bigger deals. There are some companies on the other hand that offer a flat commission on sales where agents get a nominal amount for the sales they close. A mobile phone salesman for example may earn a fixed amount of dollars for every unit that he sells.
The biggest advantage of the commission system is that it effectively promotes success and productivity. It gives sales professional unlimited earning potential. This usually leads to highly motivated workers that may go beyond the usual working hours to push their productivity. One drawback that this system brings is that there are many people that hate dealing with pushy sales people that are vested in closing a sale just to earn commission. Sometimes you simply need a little extra cash. Those with good credit don’t worry much about this, but for those with bad credit a bad credit loan from a company like BHM Financial may be your best choice.