Why Changing to a New Commission-Based Job May Mean a Cut in Earnings

Why Changing to a New Commission-Based Job May Mean a Cut in Earnings

If you’re working in a commission-based job and thinking of switching to a new one, you might assume that your earnings will remain the same or even increase. After all, you’re already experienced in sales and customer service, and you have a proven track record of closing deals.

However, the reality is that changing to a new commission-based job often means taking a cut in earnings. Here’s why:

  • New Product Knowledge

When you switch to a new commission-based job, you’ll likely be selling a new product or service. This means you’ll need to spend time learning about the product, its features, and benefits, as well as the sales process. During this time, you may not be able to sell as much as you did in your previous job.

  • Building a New Client Base

In a new job, you’ll also need to build a new client base from scratch. You won’t have the same relationships and contacts that you had in your previous job, which can make it harder to close deals and generate revenue. It may take time to build trust with new clients and establish a pipeline of sales opportunities.

  • Different Commission Structure

Even if you’re working in the same industry, the commission structure in your new job may be different from what you’re used to. You may earn a lower commission rate, or there may be additional performance metrics that you need to meet in order to earn commission. This can impact your overall earnings, even if you’re making sales.

Of course, there are also potential benefits to switching to a new commission-based job, such as the opportunity to work with a new team, gain new skills, or work with a more desirable product or service.

However, it’s important to understand that there may be a temporary cut in earnings during the transition.

To mitigate this risk, it’s important to do your research before making the switch. Research the company, product or service, and industry thoroughly to understand the potential earnings and growth opportunities. Consider reaching out to existing employees to learn more about the job and what it entails.

Overall, it’s important to approach a new commission-based job with realistic expectations. While the potential for high earnings may be there in the long term, it may take time to get there, and there may be a temporary cut in earnings during the first few  months of the transition.

So, if you’re considering switching commission-based jobs, be sure to carefully evaluate the potential costs and benefits. Take into account the learning curve, the commission structure, and any other factors that may impact your earnings. By doing so, you’ll be better equipped to make an informed decision and set yourself up for long-term success.

Reach out to one of our dedicated recruiters to assist you with your hiring and new job needs.

Supreme Staffing Group – Superior People, Superior Service.


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