A mere 90 days ago, I published an article touting the glories of being paid on a straight commission basis, if you are a salesperson.
Among other things, I pointed out that the upside can be tremendous, if you are effective in the art of persuasion. Typically, you'll be paid for your results, and this can actually qualify you to receive what you're worth, which is very gratifying, financially and emotionally.
But now, the world has changed, based on plummeting home values, worldwide recession, and a tanking stock market.
Money is tight. Access to credit, by businesses and by individuals is being restricted by miserly lending practices. Even bailout funds, issued by the government and backed by taxpayers, are being hoarded.
Cash-is-king, and a bird in hand is now worth several in the bush.
In compensation, this means if you sell for someone else YOU SHOULD NEGOTIATE THE BIGGEST GUARANTEED SALARY YOU CAN GET.
In effect, I am revising and for the most part, reversing, what I recommended only three months ago.
Here's my reasoning:
(1) Spending is being cut across the economy, so you're probably going to make fewer sales.
(2) Companies are likely to cut back on the generosity of their commission plans, making your pay envelopes thinner.
(3) It will take longer to open and close deals, even when pursuing super-qualified buyers.
All of this points to the necessity to self-finance if you accept a commission-only post. You'll need more or your own or harder-to-get-borrowed dollars, for longer that I ever contemplated 90 days ago.
Not only should you go to some form of a salary, as in a draw against commissions or a salary plus commissions; but you should also barter, if you can, for more frequent pay periods.
In a small business or mom & pop situation, you can probably get paid weekly. I see some ads that will pay salespeople DAILY, and in this banana-peel-prone economy, that no longer seems flaky; it looks good!
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