Being paid by commissions can be daunting. While the upside is that there is not much of a ceiling to your income, there is the chance that you fall well below what you need to earn to survive.
When you are new to sales, then you’ll need to be very smart about your expenses. The more you save, then the more you can stretch your first few months of what likely will be low paid.
Here are some ways to survive as a new salesperson that can see you through the lean times.
Don’t show off
Lots of sales people tend to want to portray themselves as Alphas that have the bull by the horn. This includes wearing expensive suits, flashy watches and driving luxury cars.
When you are starting out that may mean going heavily into debt to make the right appearance. The reality is that you don’t need to show off to make a sale.
Your competence and understanding of the product or service you are selling is more likely to win you the commission over what kind of a suit to wear.
There is a new way to sell that takes different skills and it doesn’t require looking like the Top Dog of your sales team.
Look at leasing a car
Though I just said appearance isn’t the most important thing, it does still count for something. If you have an old car or none at all, you may want to upgrade and lease a car.
This is a low-cost way to get into a new car and still keep you on budget. Car lease UK companies are running frequent deals so make sure you are frequently checking websites and comparing prices.
If you are on the road often to meet clients, then you do need to look professional with a presentable car. It needn’t be a new Ferrari but it shouldn’t look like it is about to fall apart either.
If your type of sales requires you to pay out of pocket for your expenses, then try sharing some of those costs with a co worker. Surely there is a new sales team member that is also looking to save money.
Some examples of areas to save money by splitting the costs are:
- Marketing materials
- Carpooling to meet potential clients
- Share software subscriptions required to work efficiently
- Split lunches
Use your company’s materials
Instead of running out and getting marketing tools that you need, try to see if your company already has some that you can use. It may have your company’s logo and verbiage, but it doesn’t mean you can’t use some of it.
Often, your company has products that they give away to prospects so it pays to see if any are available for you to use to avoid paying out of pocket to impress a client.
Know your deductions
Keep yourself abreast of changes in tax codes for commission-based income so you know where you can deduct your expenses.