Factors to Consider When Agreeing to Your Sales Associate Salary

If you have been thinking of making a career change into the role of a sales associate, there are a multitude of factors that you should consider before committing to a pay rate. One example is the commission. Some sales positions offer it, while others do not. Other positions only offer commission and no base rate.

If you do get a commission with a potential position — either solely or supplemental — will it be enough? Big-ticket items like cars or boats would mean larger commissions, but less frequent sales, depending on your area, compared to smaller-ticket everyday items like clothing.

This article will articulate the salary expectations for several of the more common types of sales associate positions and suggest things to consider before accepting the job.

This particular branch of sales has seen dramatic changes in recent years, as traditional brick-and-mortar stores cater more and more to the online shopping model. Retail sales jobs were predicted to decline well before the coronavirus pandemic brought drastic new rules to the in-person shopping experience.

These changes mean that the primary consideration for a retail sales associate now centers largely on the sufficient availability of work during sales slumps. As of May 2019, the median hourly wage for retail salespersons was $12.23. Most retail sales associates work on hourly wages, and some can be additionally awarded commission percentages based on the prices and quantities of sold items.

Naturally, an aspiring retail sales associate would need to carefully consider the value of the merchandise eligible for commission payments. For instance, a fine jewelry retail sales associate would enjoy a more sizable commission than an associate selling shoes.

What tends to be consistent across the board for retail sales associates is the potential to find a retail venue to apply to. Nearly every town and city contain retail stores, and retail sales jobs can be pretty easy to locate no matter where you live.

Another consideration that retail salespersons should pay attention to is how the work environment may impact their impressions of their own desired salary. Retail sales positions generally involve long hours on your feet and relatively close quarters with all sorts of customers.

This is a fairly public job that comes with all of the itinerant stresses of dealing with consumers. Figuring out whether the general busyness of the establishment and the hectic times will be worth the money is a big consideration.

In contrast to retail sales associates who tend to deal directly with customers, wholesale and manufacturing salespersons deal with other businesses, government agencies, and any other organizations that buy products on a more large-scale basis.

Salespersons working in wholesale and manufacturing typically enjoy a higher salary than what is common for a retail worker, but with that higher salary comes an equivalent leap in workplace responsibility. The median annual wage for a sales representative working in wholesale and manufacturing as of May 2019 was $81,020.

Sales associates who work in wholesale or manufacturing jobs have the responsibility to negotiate prices, service agreements, and terms of sale. While this type of sales job is not as public as that of a retail worker, especially if you focus on becoming an internal wholesaler, it can be every bit as hectic. Once you factor in the management of multiple contracts and even multiple services or products per salesperson, a fair amount of your time in this job may be spent on the phone or the road.

A wholesale or manufacturing sales associate often needs to consider asking for compensation to cover drive time and mileage associated with negotiation meetings and customer follow-ups.

Real estate sales associates enjoy a wide range of responsibilities surrounding the listing, advertising, and sale or rental of properties. Real estate professionals are typically expected to prepare homes for showing and keep tabs on the properties that go up for sale in their designated areas.

Real estate sales associates must often mediate in negotiations between buyers and sellers, as well as present bids or offers to sellers for consideration. The upshot of this type of sales is that you can usually make your own schedule. The downsides include dealing with unreasonable clients and the ever-changing real estate market.

When evaluating a fair salary for the time you will spend on this job, do not forget to factor in expenses related to the following real estate sales associate requirements:

• Open houses. As a real estate agent, you will be expected to host clients in prospective homes. The costs of getting to and from these events and the incidental expenses associated with providing a welcoming atmosphere to potential buyers should all be considered in a decision about an appropriate salary.

• Evenings and weekends. Sales associates working in real estate do not have the luxury of working set hours. They have to meet clients’ schedules, and this often means erratic or extended scheduling.

• Preparing documents. Real estate agents manage mountains of paperwork. The time and precision it takes to execute these documents correctly is valuable and should be reflected in your agreed-upon pay.

Real estate is a field in which big commissions can come in but may not come in as frequently due to the general unpredictability of the housing market. As of May 2019, the median annual wage for real estate sales agents was $48,930.

If you decide to work for a real estate agency, you will be subject to their set rates as to commission. Becoming an independent or freelance real estate sales associate leaves you the freedom to negotiate your own commission percentages.

Becoming an insurance sales associate is a viable job option for workers with good people skills and strong communication. Sales associate jobs in the insurance sector have been on an upward trajectory that is expected to continue. This can be a lucrative field for sales professionals who might be more suited to the office-related and administrative side of selling.

Insurance sales generally require the sales associate to drum up their own client list, which can be quite time-consuming and, thus, should be factored into the salary you agreed to. You will also be expected to know and explain the features of the insurance plans you provide. Sales professionals in this field need to be able to analyze current coverage, suggest affordable improvements, and keep track of electronic and paper records.

Depending on what branch of insurance you enter, commission may or may not be available. Many times, this will be determined by the brokerage or agency you’re working with. Independent agents may make only a commission in some cases. With a median annual wage of $50,940 for workweeks that average more than 40 hours in many cases, insurance sales associates should also factor in the reality of nights and weekends spent arranging presentations for clients and completing paperwork.

With so many potential sales associate jobs out there, it can be hard to know where to start and how to sort out the fluff. Joblist understands that career paths are rarely a straight line, but our presentation of your options always is. Whether you are looking for a job in auto sales or want to delve into becoming an external wholesaler, Joblist has solutions and support for you.

We offer professional resources that can support your job hunt no matter where you are in the process. Check out Joblist today to find your next sales associate position!