I AM a field salesman, paid on commission. How can I maximise my potential earnings through this route without too much risk?
There are ways to play the commission game. Different sectors use bonuses and commission payments in different ways and you may be able to take advantage of this.
The manufacturing sector as a whole is not the most generous in terms of commission schemes for salespeople. The most generous tend to be the financial and pharmaceutical sectors, but selling in these sectors involves a step up in terms of product know-how, and also legislative compliance. The potential rewards are far greater in the long run, but there is likely to be a steep learning curve before you can sell effectively in either sector.
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The best place for fairly generous bonuses for salespeople, but where the products sold are relatively uncomplicated, is the consumer goods sector — branded food, drink, and household goods which require little technical sales expertise. The sector generally pays well and on-target bonuses for field sales reps can be 50 per cent higher than the manufacturing sector. Consumer organisations also tend to be competitive on basic salary and benefits.
The chemical sector also pays generous commissions, but products can be complex. Overall, the consumer goods sector is a more rewarding place for star salespeople to be.
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Information provided by Ben Frost at the people management consultancy The Hay Group. The UK HayPayNet database is compiled from salaries supplied by more than 600 organisations. www.haypaynet.com