Beth Bruck has a college degree in broadcast journalism and earns a six-figure income–as a commission saleswoman for legal publisher CCH in Riverwoods.
“It’s great,” said Bruck, 31, who lives in Cincinnati. “I set my own schedule, meet with all types of people, and the harder I work, the more money I make. That’s always a good concept.”
It may also be a good time to consider commission sales as a career. While regular hiring is down–the National Association of Colleges and Employers in Bethlehem, Pa., says that employers will be offering 20 to 25 percent fewer jobs to 2002 college graduates this year–sales openings are up. Forty-one percent of the 200 corporate executives interviewed by Cleveland-based Management Recruiters International surveyed in December said they plan to expand their sales staffs this year.
The reason is obvious, experts say. In a down economy, employers need sales to stay alive and hiring salespeople on commission has little downside risk. According to Michael Reagan, president of the National Association of Sales Professionals in Scottsdale, Ariz., the country has about 23 million salespeople, ranging from that telemarketer who interrupts your dinner to sellers of insurance and stocks. Most of them, Reagan says, earn the bulk of their income through commissions, which typically range from 5 percent to 20 percent of sales.
Many, like Bruck, also earn a base salary that totals about 40 percent of their total compensation, while others, like car salesmen and real estate and insurance brokers, work on straight commission.
Zrinka Allen, manager of employee relations and staffing at CCH, says her company employs about 400 sales representatives and is trying to hire more. Dale Houston, general manager of Sterling Medical in Wheaton, has been looking for the right person to fill a sales position for over a month.
But that right person is probably not someone who takes a sales job because nothing else is available. “That’s the kiss of death,” Reagan said, “because you’d be doing something you don’t want to do. In fact, 50 percent of the people who take sales jobs are gone within the first six months.”
But consider carefully before you decide you’re not cut out for a sales career. Reagan says that you can overcome your initial dislike of sales by finding a product or a service that excites you. “If you’re interested in photography as a hobby, get involved with a company that sells photographic equipment,” he said. Tracy Levin, 35, of North Aurora, for example, has a degree in art and a good part-time income from commissions on the frames she designs for customers at the Fastframe shop in Wheaton.
“You never really know if you’ll love or hate a sales job until you try it,” Bruck said. She moved into sales after her job at an Ohio television station soured and a colleague invited her to try to sell copiers instead. She switched to selling tax research software and was recruited by CCH last summer. As a field sales representative for CCH, Bruck works from a home office and makes sales calls to customers four or five days a week. After she puts her two small children to bed each evening, she’s back in that office doing paperwork.
“You have to be self-motivated,” she said, “and you have to like being your company’s front-line person. When a big order comes in, you’re the hero. But if a client’s upset with something, you’re the bad guy, even when it’s not your fault.” Since starting her sales career, Bruck has earned between $70,000 and $110,000 a year.
But no one starts out earning a six-figure income. Allen says it takes new CCH sales reps 6 to 12 months to begin earning decent commissions. At Sterling Medical, a firm that sells medical equipment for six manufacturers, it can take even longer. Houston says he’s had one rep for seven years. The first year he made $25,000; the next $40,000 and now he earns about $140,000. Like many firms that employ commissioned salespeople, Sterling pays no benefits.
Sometimes, it’s feast or famine in commission sales.
Jim Mazzetti, who sells cars at Steve Foley Cadillac in Northbrook on 100 percent commission, just ended his best year ever. But during the recession of 1993, he went almost eight months without earning anything.
If you’re still interested in pursuing a sales career, you can begin by scanning the newspaper and job board ads for positions in companies that match your fields of interest. Most ads contain a phone number and that’s not by accident.
“Our assessment of a candidate begins on the phone,” Allen said. “We can quickly tell if you’re articulate and if you have enthusiasm in your voice. If you can’t communicate on the phone, we’ll thank you for your time and end your application.”
If you pass the phone test, making a good impression at your initial interview is crucial to landing a sales job. “We’re looking for a person who’s confident in his or her abilities but isn’t cocky,” said Dean Knudtson, the director of personnel training for IPA, a management consulting firm in Buffalo Grove. “The best way to show me you can sell is to sell yourself to me.”
Is selling on commission right for you?
What should you look out for when assessing a job in commission sales?
– Will you be glued to the phone? Most sales positions begin with inside sales, a.k.a. telemarketing. “Don’t get stuck there,” said Chris Tucker, 23, of Palatine, who has worked the phones to sell cell-phones, Web sites and DSL (digital subscriber line) access. Before you take that kind of job, Tucker advises, “Talk to other salespeople to find out if there’s really an opportunity to switch to outside sales, where you’ll see clients face to face.”
– Beware of hype, says Joyce Gioia, president of The Herman Group, a consulting firm in Greensboro, N.C., that focuses on workplace trends. “Classified ads claim you can earn a lot of money. Talk to people at the company who have been there a while to find out what they’re really earning.”
– Study the commission structure before jumping at a job offer, says Jason Cohn, 23, who sells high-speed Internet access for a company in San Diego. “A job with a low base salary and a high commission can be more rewarding, but it’s also more risky when the economy turns down,” he said. “And ask when your commission will be paid. You want to get it at the time of the sale, not spread out over several months.”
– Go with a good product. Bob Mander, a Chicago-based business communications strategist and author of “Sales: Building Lifetime Skills for Success” (Ryan & Co., $16.95), says that products and services are changing quickly. Be sure there’s a strong future market for whatever you plan to sell.
– Prepare to be rejected. Most of the people you’ll call or visit will say no, no matter how excited you are about the product or service you’re selling, Tucker said. “But if you enjoy talking to people, and can find a way to make every sales call a little different, you can have fun and make good money at the same time. What can be better than that?”
— Julie Bennett
