How to Turn a Commission-Only Income into a Steady Paycheck

Likely the hardest transition a new commission sales professional will face will be the loss of the steady paycheck. Let's face it: Most of us were indoctrinated into the working world getting a set number of dollars per week, hour or month. Performance meant we kept our jobs, but, at least at first, had little to do with how much, or if, we got paid.

As a sales manager, I often meet outstanding candidates for sales positions; people with the drive, the courage, the skills, the centers of influence; who don't listen to a word I say after they find out the position being offered is commission only. It is especially sad to see these people settle for $40,000 a year jobs they hate when people with far fewer things going for them make three times that much essentially working for themselves.

So how can you take a constantly shifting, commission-only income and create a steady paycheck?

What follows has been proven to help new sales professionals on my teams.

The biggest thing people complain about in commission jobs is fluctuation in income. This is different than not enough income. Typically, over the course of a year, there is plenty of money. It's just that for many, income seems to be "feast or famine". In order to combat this problem, it is often suggested that a portion of each paycheck be set aside for "leaner" times.

Great idea, right?

It actually is a great idea. Too bad almost nobody has the self-discipline to do it.

Like many things when it comes to money management, the trick to making this "leaner times fund" happen, is to make it automatic.

The first step is to go to your bank and set up a savings account where you will deposit all of your income via direct deposit, if possible. This account is the foundation of the plan. You are not allowed to manually take money out of this account.

You will then set up a twice monthly, automatic transfer of funds from this account into your checking account. Each deposit will be for half of your monthly budget (Yes, you do have to create a budget). This is the money you are allowed to spend each month to meet your financial needs.

Congratulations! You just got your steady paycheck.

Of course, you must ensure this account grows beyond what you are taking out of it. That is your job as a sales professional. Once you have a certain reserved accumulated in your savings account, you can give yourself a "raise" by increasing the amount of your "pay checks".

Now you are armed with a tried and true method of ensuring a steady pay check. Go sell something and quit stressing!