Commission-only sales jobs: the honest pros and cons

Commission-only sales jobs pay you a percentage of what you sell and nothing when you don’t, so the upside is flexibility and uncapped earning potential, and the downside is that your income can be zero for weeks while you learn. They can work well in Australia and the US if the leads are good, the offer is genuinely in demand and you have savings or other income to carry you through the ramp-up. They’re a bad idea if you need a reliable pay packet from week one, or if the “job” asks you to pay to get started.

The honest pros and cons at a glance

Most remote closing and appointment setting roles, especially with online coaching, course and service businesses, are commission-heavy or commission-only. That isn’t automatically good or bad. Here’s the trade-off laid out plainly.

Pros	Cons
No cap on what you can earn: more sales means more commission.	No sales means no pay, including in your first weeks while you’re still learning the offer.
Often flexible: many roles let you set call blocks around school drop-off, pick-up and bedtime.	Income swings month to month, which makes budgeting (and mortgage applications) harder.
Easier to land than salaried sales roles, because the business carries less risk hiring you.	The business carries less risk because you carry more of it. Bad leads cost you, not them.
You get paid for results, so skill improvements show up directly in your pay.	Refunds, payment plans and clawbacks can delay or reduce commission you thought you’d earned.
Great training ground: you learn fast when every call counts.	Often set up as contractor work, so no paid leave, and you handle your own tax (and in some cases super in Australia).

Is commission-only pay even legal?

Yes, but the rules depend on whether you’re an employee or an independent contractor, and that’s the first thing to check in any offer. This is general information, not legal advice, so if something feels off, ask the regulator or an employment adviser.

Australia: Fair Work and the ATO

If you’re hired as an employee, the Fair Work Ombudsman says you can only be paid commission-only when an award or enterprise agreement says you can be paid this way. Employees who aren’t covered by an award or agreement can still be paid commission, but they must receive at least the National Minimum Wage.

That’s why most commission-only closer roles are set up as contractor arrangements. But a label on a contract doesn’t decide it. The ATO’s guidance on the difference between employees and independent contractors says the key question is whether you serve in the business as part of it, or provide services to further your own business, and that calling someone an “independent contractor” in the contract won’t by itself determine the relationship. The same page notes a business may still have to pay super for some contractors, for example where the contract is wholly or principally for the person’s labour.

United States: FLSA, DOL and IRS

In the US, the main federal exemption that lets employers skip minimum wage for salespeople is the outside sales exemption. The Department of Labor’s Fact Sheet #17F says it applies when your primary duty is making sales and you’re customarily and regularly working away from the employer’s place of business. Crucially for remote work, it says outside sales does not include sales made by mail, telephone or the internet (unless those only support in-person calls), and a fixed home office used as your headquarters counts as one of the employer’s places of business.

In plain English: a closer selling over Zoom from home is generally not an outside salesperson. If you’re an employee in that role, you’re generally owed at least the minimum wage for your hours. The federal minimum wage is $7.25 an hour, and the DOL notes some states set higher minimums, with employers required to follow both.

So, again, most US commission-only closing roles are contractor (1099) arrangements. The IRS explains that contractor vs employee status depends on the degree of control and independence across three areas: behavioural control (does the business control how you do the work?), financial control (who controls how you’re paid, your expenses and your tools?) and the type of relationship (contracts, benefits, and whether the work is ongoing and central to the business). If a “contractor” role comes with fixed shifts, mandatory scripts and close supervision, that’s worth a question.

Question	Australia	United States
Can an employee be commission-only?	Only if an award or enterprise agreement allows it; award/agreement-free employees still get at least the National Minimum Wage.	Generally only under an exemption like outside sales, which doesn’t cover phone and internet selling from home.
Who decides contractor vs employee?	The ATO (tax and super) looks at whether you serve in their business or run your own. The contract label alone doesn’t decide it.	The IRS looks at behavioural control, financial control and the type of relationship.
As a contractor, you handle…	Your own tax, ABN and records; super may still apply in some cases.	Your own federal and state tax, usually without withholding.

How to evaluate a commission-only offer

Before you say yes, get answers to these six questions, ideally in writing:

1. Lead quality: Where do the leads come from (ads, content, a setter team)? Are they people who booked because they want help, or cold lists?
2. Show rate: Of the calls booked, how many people actually turn up? Ask what the current team sees.
3. Offer price: What does the client pay? Is it paid in full or on a payment plan?
4. Commission percentage: On what? Total contract value or cash actually collected?
5. Payment timing: When do you get paid: weekly, fortnightly, monthly, or only after a refund window closes?
6. Refunds and clawbacks: If a client refunds or stops paying, do you lose that commission or have it taken off a future payment?

Worked maths (illustrative only)

These numbers are made up to show the method, not a claim about what closers typically earn. Swap in the real figures from the offer you’re looking at.

Step	Offer A (strong leads)	Offer B (weak leads)
Calls booked in a month	40	40
Show rate	70% = 28 calls	40% = 16 calls
Close rate on calls held	20% = 5 sales (rounded down)	10% = 1 sale (rounded down)
Offer price	$3,000	$3,000
Commission at 10% of cash collected	5 x $300 = $1,500	1 x $300 = $300
One refund clawed back	$1,500 – $300 = $1,200	$300 – $300 = $0

Same offer, same commission rate, wildly different result. That’s why lead quality and show rate matter more than the headline percentage. Now add payment plans: if Offer A’s buyers pay in three monthly instalments and you’re paid on cash collected, your first month’s commission is a third of that figure, with the rest trickling in later (if they keep paying).

Then work out your effective hourly rate. In Offer A, 28 calls at about an hour each, plus prep, follow-ups and team meetings, could easily be 40 or more hours. Divide your commission by your real hours and compare it with the minimum wage where you live. If it’s well below, the offer needs better leads, a higher price point or a better percentage, or it isn’t worth your time.

Plan your runway before you start

Runway is how long you can keep going before the commission catches up. My own first month in remote sales back in 2020 brought in $440. That’s my result, not a typical one, and a reminder that most people build slowly.

• Add up your must-pay costs for a month: rent or mortgage, groceries, childcare, bills.
• Decide how many months you can cover from savings, a partner’s income or other part-time work while commission is unpredictable.
• Set a check-in date. If after that point the numbers from your offer aren’t working, change offers rather than quietly drain your savings.
• Put tax aside from every payment if you’re a contractor, because nobody is withholding it for you.
• Keep a simple tracker: calls booked, shows, closes, cash collected, refunds. It tells you whether the problem is you, the leads or the offer.

For pay ranges from public job data, see how much remote closers make.

When commission-only is a bad idea

• You need fixed income now. If missing one month would mean missing rent, look for base plus commission or a salaried role first.
• They ask you to pay to start. The US Federal Trade Commission’s job scams guidance is blunt: honest employers will never ask you to pay to get a job, and claims of a lot of money in a short time with little work are almost certainly a scam.
• Your pay depends on recruiting people, not selling to real customers. That’s network marketing territory. My own first taste of sales was in network marketing back in 2014, so I know the model from the inside.
• They won’t share numbers. No answers on lead flow, show rates or clawbacks means you can’t do the maths.
• You’d be embarrassed to sell the offer to a friend. High refunds and unhappy buyers hit your pay and your reputation.
• There’s no written agreement. No contract, no clear commission terms, no thanks.

If you want something gentler to start with, appointment setting often has shorter calls and less pressure. Our comparison of remote closer vs appointment setter explains the difference.

Getting the skill, then getting the role

I started as a primary school teacher in a small town and have since generated over $10M in online sales, but none of that happened on day one. Commission-only pay rewards skill, and skill comes from practice. That’s the gap She Sells is built for: learning how to run calls with live coaching and role play, then finding a good role. Our She Soars program includes placement support once you’re certified, while She Launches is the foundation program without direct placement. You can see the details on our programs page, read is She Sells legit?, or check the FAQ.

Frequently asked questions

Are commission-only sales jobs worth it?

They can be if the leads are good, the offer sells, commission is paid on a clear schedule and you have enough runway to get through the learning curve. They’re usually not worth it if you need fixed income immediately or the business won’t share its numbers.

Is commission-only pay legal in Australia?

For employees, the Fair Work Ombudsman says commission-only pay is allowed only where an award or enterprise agreement permits it, and award/agreement-free employees must still get at least the National Minimum Wage. Many commission-only roles are contractor arrangements instead, but the contract label alone doesn’t decide your status.

Can a US employer pay a remote salesperson commission only?

The FLSA outside sales exemption doesn’t cover sales made by phone or internet from a home office, so a remote employee selling that way is generally owed at least the minimum wage. That’s why many US commission-only roles are structured as independent contractor work, which the IRS assesses based on control and the overall relationship.

What commission percentage should I look for?

There isn’t one right number, because the percentage means little without the lead flow, show rate, offer price and refund terms. Run the maths on a realistic month and compare the result per hour worked, not just the headline rate.

How long does it take to earn from a commission-only role?

It varies a lot with the offer, the leads and your skill, and the first weeks are usually about learning. Plan for several months of uneven income and set a date to review whether the role is working.

Results vary. Nothing here is a promise of income. See our earnings disclaimer.

Keep reading

• What is a remote closer? The job explained
• Is remote sales legit? How to spot the scams
• Remote closer vs appointment setter: which suits you
• How to make money from home as a mum