| In a recent piece I outlined 5 tip-offs that reveal | | | | 1000 company, which is image conscious and |
| when straight commission jobs are rip-offs, or at | | | | aspires to earn a berth on one of those "Best |
| least "opportunities" you should decline. | | | | Places to Work" lists, or is it a firm run by a lone |
| But that article left me feeling I created a | | | | wolf or by a partnership that couldn't care if it is |
| vacuum. I didn't disclose the five ingredients we | | | | sued right and left for unpaid wages and for |
| should look for, so here they are: | | | | stiffing vendors? The burden of proof is on |
| (1) There needs to be a SUBSTANTIAL payoff | | | | novices to demonstrate that they are NOT |
| for success. You're taking on a lot of risk, and of | | | | flakes. |
| course the primary one is that you'll invest your | | | | (4) There needs to be a short sales cycle, |
| time, talent, effort, and ego in an utter loser and | | | | preferably measured in days or a few weeks. If |
| emerge with zilch. There is a simple balancing | | | | you're self-financing, which is what a |
| formula that investors use for evaluating an | | | | straight-commission arrangement requires, you |
| opportunity: Does the reward substantially | | | | need to see cash flow and fast. You can't go out |
| outweigh the risk? If not, then pass. | | | | on a limb and invest months in the hope that you'll |
| (2) The ultimate compensation must be greater | | | | make your first sale. |
| than that being offered for a safe, no-risk sales | | | | (5) Ideally, others are on board, making a steady, |
| job. Imagine at Company A they're offering a | | | | big income doing exactly what you're going to do. |
| commission-only job that has the potential of | | | | I spoke to the head of a company who asserted |
| yielding $100,000 per year. At Company B, they'll | | | | that he had a USC college student selling deal |
| stake you to a guarantee, to a draw or a salary | | | | after deal, making about $4,000 a week. Why did |
| of $100,000. It's a no brainer; you'd have to go | | | | this sales master leave? Where is he now? What |
| with B. The realistic earning potential of A has to | | | | were his methods? This sounds a lot like that big |
| add up to, minimally, 150% to 200% of what is | | | | fish tale about "the one that got away." |
| being tendered by B. | | | | Keep these five criteria in mind as you screen |
| (3) Management at the commission-only outfit has | | | | sales jobs or any pay-for-performance situation. |
| to be seasoned and trustworthy. Have they met | | | | Commission-only deals can be lucrative, but you |
| a payroll, before, or are they in a | | | | need to turn the tables and to qualify those that |
| seat-of-the-pants, gee-golly-gosh start-up mode | | | | are offering them. You should hitch your wagon |
| with no financing? Are you working with a Fortune | | | | to them only if they can pass a stringent test. |