Go Straight...Straight Commission

Sales Jobs in Tough Times

A lot of good salespeople are on the street these days, looking for employment during the tough economic times we are experiencing. Under normal conditions, it would be hard to accept the economy as a reason for seasoned sales men and women to be unemployed. Excuses have never been acceptable in the tough competitive world of selling.

Things are Different

It seems that I hear from someone who has been let go from their sales job just about every day. It continues to amaze me. There seems to be a large segment of the corporate world that is contracting as fast as they can get it done. They are rushing to or are already in survival mode. Once a decision is made that there are no buyers buying, the sales team becomes most vulnerable and most expendable. I, like a minority of others, believe that now is the most critical time for companies to push for new sales, possibly in new industries or segments, but the current rule seems to be to cut overhead by shrinking the sales department.

A Ton of Talent

There are a lot of educated, experienced and talented sales professionals looking for work because of our once in a lifetime economic slowdown. I can’t hold someone at fault for failing to produce sales in an industry or segment that is in free fall. When I think of how far our domestic automobile industry has fallen and will continue to fall and the resulting cascading effect of thousands and thousands of suppliers, and the services and support resources that rely on them, it makes me very concerned.

We’ve Been Spoiled

As productive sales professionals we’ve had it good over the decades. We really made a lot of money and benefits and have been living high. We have enjoyed salaries, bonuses, incentives of every type and have consistently been among the highest earners at our companies. We earned it.

Things Changed

On the subject of sales compensation, things have changed and may never be the same again. I suspect that the days of substantial salaries and other “up front” or front loaded sales compensation plans have gone away and will stay away. A lot of companies are hurting and are financially fragile. That is the reality of business today. They would love to have a strong sales team on the street fighting for business in the smaller market available today, but they just can’t underwrite the cost of maintaining a sales department that is not making numbers or is non-productive.

Need a Sales Job?

My friends and colleagues, who have lost their sales jobs, are competing in a very tough job market for the positions that are hiring. Some of the jobs are positions beneath what they were doing and offer much less in compensation. It’s a problem. Many of them are not getting hired because their requirements are high and they aren’t budging.

Earn What You Earn

I’m helping coach a Little League Baseball Team. My grandson is playing and I enjoy being there and helping coach the kids. One of the dads who help coach the team has been with a medical device manufacturer for twenty-six years…on straight commission. I was a medical supply salesman for twelve years and forget that I was indeed on straight commission. I was paid a percentage of what I sold. The job was great, I made money. The pay plan was equitable and had no effective limits on earnings. My coach friend confirmed that, for the most part, health care sales compensation is still performance based. Sell more, make more.

Job Hunters: Change Your Thinking

My advice is a little bit tricky. If you are looking for a sales position, it’s a good idea to look in an industry that isn’t distressed. America is still open for business. Commerce still happens every day. If you really anxious to get back to work and if you are confident in you ability to sell, why not change your thinking? Why not consider applying for a commission based position? A position where pay is based on results? The fact is that if you hold out for big salaries and perks you might be holding out for a very long time.