by Ken Johnstone

Created on: May 14, 2009   Last Updated: May 16, 2009

In my experience, there are two very distinct types of "salespeople".

Firstly you have what I would call a sales representative. This is the gal or guy who represents a company either in-house or on the road. Their job is more that of a representative of the company than a pure salesperson, and they often call on already existing clients, their role being more that of an order-taker than originating new sales. Often their salary is made up of a fairly realistic basic wage plus a small level of commission on the orders they take, with a company expense account and often a company car (or car expenses) thrown in as an added bonus.

The second type of salesperson is what I would describe as the pure salesman. They often aren't employed directly by the company they represent, but instead are affiliated to them on a self-employed basis. They don't receive company generated sales leads, instead "cold-calling" most of the time, and look after their own transport, hotel, and travel expenses. This type of salesperson is nearly always paid purely on a commission only basis. They receive a high percentage of the price of the product or service they are selling in commission, but, of course, also run the risk of earning very little if their sales performance isn't up to scratch.

Many types of people are able to perform well as representatives, but I believe it takes a special breed to operate as pure salespeople. Having worked in both roles throughout a sales career spanning 30 years, my own belief is that if a sales person really wants to earn big bucks then it's a no-brainer when it comes to choosing between the two types of position. A really good commission-only salesperson has practically unlimited earning potential, and rightly so, as they are taking a huge gamble on their own ability to generate sales.

Often old established or high public profile companies tend to employ "representatives", whereas new start-up businesses and companies with an aggressive marketing policy will opt for self-employed commission-only agents.

Both types of position have their advantages and drawbacks from the individual salesperson's perspective. A representatives position is often more secure and less pressurised, whereas a commission-only salesperson is really only as good as their last month's sales figures, and will soon be dispensed with if they can't hand in the orders.
From my own point of view I was always more attracted to the role of the self-employed commission-only agent. I sold cars, encyclopedias (before they all went online!), and fire extinguishers in this manner in a long sales career that earned me large wads of cash in commission. But in my mid-40's I reached the point where the stress and pressure of such a highly competitive job finally took its toll, and I retired from sales into a less lucrative profession. (Or professions, as I now have three separate jobs!)

So in answer to the question as to whether or not salary has a place in a sales environment, my answer would be both yes and no. Yes if the person is employed as a company representative, and no if the person is a self-employed sales agent.

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