What are the pros and cons of a commissioned based job vs hourly vs salary?

The pros: You get paid what you're worth. The cons: You get paid what you're worth.

Regarding earnings:

Pro? Higher ceiling.
Con? Lower floor.

Do not, repeat do not, I say again do not take a straight commission position unless you have been in the position for a least a year, or have a residual commission that is already paying at least a 3rd of your income. This is not to say there are not some good companies to work for, but it has been my experiance that the commission only jobs do not fill your gas tank and if you can't go make face to face sales calls, you can't earn money. all to often people think that they can start out on the phone, but that in most cases is a failure because its hard to see the emotion on someones face over the telephone. If a company is worth working for there will be a base income (with a guareentee commission) that can get you out and moving. when you are driving around and being active in the sales territory you will find stuff by accident.

Confidence is the basic difference, if you have a choice. My experience in sales was you negotiate a best salary that you can live on and get commission to boost it up. Does require confidence in yourself. Personally, I would not go with salary alone, unless it was quite high. Hourly normally isn't used by professionals and management (don't get upset anyone, its just my opinion).

I currently work in a position that is a mixture. We have a base salary plus weekly incentive pay. For most of us, the incentive pay is the biggest chunk of our check, however there is still that guaranteed income. I would never take a straight commission job as it doesn't provide a consistent steady flow of income that is guaranteed. Hourly jobs allow for a decent paycheck depending on the number of hours worked. For me, I like the mixture. I know every week I will get X amount of dollars, I budget off that and any incentive I receive is savings, vacation fund, investments.

If you are selling a service or product that is awesome then a commission only pay could be great. If hundreds of thousands of people are selling the same thing then you will have to sell at lowered prices which will resort in a lower commission. Many companies will pay a "draw" type salary which will be taken out of your commission but insures you get paid something every week. Make sure to ask about a split type pay plan, it has always worked out for me over my 31 years in sales.

Hourly, you don't actually have to produce, so it's rarely value for value, the only ethical exchange between people. On commission, you earn what you produce.

Most salaried employment is exempt from Overtime payout laws (at least in this state), but you still get paid regardless. Hourly rates are only paid out if you work them. Commissions are only paid out if you actually sell something. If you are a AC salesman in Alaska during December you might be SOL.

Commission: if it's (the job) good and you're a good sales guy is limitless income potential... But if it isn't or you aren't you'll starve.

Hourly: you work x hours, you get paid for x hours, usually pays less than salary, and in a down economy hours might get cut.

Salary: usually pays more and theoretically if there isn't work to do you go home instead of trying to "look busy".

In practice though I always have work to do and usually end up 50-60 hours a week, sometimes up to 80 but seldom less than 40.

Hope that helps

Sales drive every commercial organization's success. Come to think of it, the same is true in the military isn't it? Just how fat would a military budget be if someone didn't sell defense programs to Congress? That being said, I have never heard of anyone becoming wealthy on a salary. On the other hand I have known many who became wealthy on commissioned sales. Interestingly, the most successful were fired because one day some idiot in management thought to himself how much more the company would profit if they didn't have to pay fat commissions to the sales force. Of course, they met with predictable results. There's a story famous in advertising circles about old man Wrigley who was once riding a train from San Francisco to Los Angeles. He had completed his chores and was about to enjoy the passing view when his private secretary asked, "Mr Wriggly, you are making a vast fortune. You sell more chewing gum than all of your competitors combined. Why don't you stop investing so much in advertising and keep that money as profit." Wriggly responded by asking, "How fast is this training going?"

"About 60 mph."

"Does the railroad want it to go faster?"

"No, sir"

"Then why don't they remove the locomotive and save all that money they're spending on fuel?"

Fortunately, a successful salesman can always find another gig when their employer decides to remove the locomotive...