So here are a few of the facts about straight commission:

First: We cannot pay you hourly for working from home, unsupervised.

And 2nd: I can tell you most assuredly that those salaried, or salary plus commission or salary versus commission jobs do not give you the opportunity that we offer.

Lets examine a little more closely. You see, those companies that offer a salary or draw, take the money to pay those salaries and draws, off the top end of the earnings, that would normally go to the every sales producer, to subsidize the less productive sales people. Salespeople who have been around a little bit already know this is true and they also know that most of the top paying sales positions pay straight commission. I only mention the above because some of you applicants may not have learned this yet. Any salesperson with the right product, who trusts his or her ability, does not need a draw. A draw is too easily taken advantage of. We refuse to penalize all of our sales producers to subsidize the few who either can't cut it or might abuse a draw.

I'd really like to get this point across so I will provide an example: Lets assume that "ABC Company", like all businesses, allocates that a certain percentage of all sales, will be paid out to salespeople. ABC Company pays every rep $60.00 per day or whatever commissions they earn. If a rep has had no sales on a particular day... where does the $60.00 come from?... Answer: "It comes out of the total commissions" allocated, but where specifically in the commissions does it come from?... It comes out of the overall percentage!...

Conclusions:...

• While ABC Company could have paid its representatives 40% commissions, it can now only pay 25% because it needs to fund the salaries and/or draws.
• The net result is that it hurts EVERY REP on the top end of their earnings potential. The very most its reps can earn is 25% instead of 40%.
• ABC Company's reps have average earnings far less than if they had no draw and were paid straight commission at 40%.
• What's worse is that the money being funneled out, is being paid in most cases to the least productive of the sales reps.

You see, the companies paying these salaries or draws are basically looking for "order takers" or at best "average salespeople". Paying an hourly salary or a draw is the only way to attract these less skilled employees. You might be thinking that I am laying this on a little heavy or perhaps exagerating a little here but allow me to point out this fact:... A company's executives look at their balance sheets and say, "what is the least amount we can pay our salespeople, so that if sales are slow during any given period, our employee salaries and draws do not put us in the red... I hope you think about this one a little bit.

You see, a company who pays straight commission is NOT in danger of going backwards due to paying salaries and draws to its weaker salespeople, this only makes good business sense.

AND...Companies who want to hire professional and talented salespeople need to be able to offer A HIGHER EARNING POTENTIAL, than the typical "ABC Companies" who offer salaries and draws. To attract professionals, they need to offer competitive professional earnings. Paying straight commission allows them to do this and also helps them weed out the less ambitious or less qualified people.

Thank you for reading,

Tom Ruley
NROTC Founder and President