26 Apr Why Salespeople Make Salary and Commission in New York State
Other than your standard salary, salespeople in New York State make something called commission. First off, salespeople make base salary. This base salary means that even if you do not sell one thing, you’re still getting paid at the end of the week. However, if you do sell, you will make commission. Commission is the amount of money you earn by making a sale, so it varies. Typically, you make a percentage of the sale value back, based on how many units you sell.
The Most Common Pay Structures for Salespeople:
- 100% Commission: This means that you do not make any money unless you actually sell. This is usually not ideal for salespeople.
- Base Salary + Commission: Salespeople receive a salary, but also commission on top of that.
- Salary + Bonus: Salespeople receive a salary and a bonus.
A massive benefit regarding commission is the newfound drive and motivation employees will get. They will think to themselves, “If I sell more, then I will gain more money for myself.” This is also beneficial to the employers, because their employees will now have more motivation to sell, so this will potentially make more money for the company.