Is this a decent commission structure?

[Anonymous]

We get 3% of our quarterly YOY growth. But this is net overall. So any customers in a negative YOY cancels out any growth from other companies.

This is my first commission based job. Base salary is ok but not great. I’m just worried that with this structure I won’t be able to make much extra-or have to work really hard to just break even on growth and still not get a great bonus.

[slatyb]

Decent doesn't matter. If you aren't happy, then look for another position.

[slatyb]

It doesn't matter how your compensation is structured. The only thing that matters is whether you are being paid the market rate for you work. If you don't know, then you should look for other positions and see what you can get. Always be open to new opportunities.

[In_Trance]

It really depends on what your average sale is. Three or four percent of $50,000 is a lot different than three or four percent of 2 million dollars

[Asker]

Well I get paid overall net. So any negative growth is reflected. For example this past quarter I had $185K in growth, $194K negative. I didn’t get 3% of that positive growth. My bonus was $450. I just worry I’m gonna have to bust my butt just to break even and make a small bonus.

[AI Opinion]

In my experience, a commission structure like yours, which considers net overall growth, can be challenging. It emphasizes team performance over individual success, potentially limiting bonuses if some clients decline. If your goal is substantial bonuses, you might need to explore strategies to mitigate negative contributions from declining customers. Consider discussing with management to understand their long-term plans for this structure and express any concerns. Networking with colleagues in similar roles might offer insights into maximizing your earning potential within this framework.

[Anonymous]

I believe Advisor Smith explained it quite well.