Companies taking advantage of young, naive sales people? (Chicago: how much, layoffs)

[cdubs3201]

I'm trying to find out if this is a local Chicago trend vs. National, recent vs old. I've noticed now for 3 years since entering the sales workforce that many phone sales/inside sales companies hire many young recent college graduates with promises of large commission payouts and job growth, only to suck them dry with 12 hour work days and then layoffs.

Examples: First company I worked for 2.5 years, put in 12 hour days, got good at my job, took a small promotion, but had to take a step back in pay for it. A year after promotion, restructured my sales district and cut my pay in half and altered my commission structure.

Second company I work for now, been here 8 months, was enticed with a decent base salary (not enough to live on, but in sales a base salary is not something to take for granted). However, the commission structure has changed 3 times in 8 months and I make next to nothing in commissions. I may be years away from a promotion or increase in salary.

I'm now looking for my third job in 3.5 years. I'm a hard worker, I've developed very good sales skills and valuable business relationships in Chicago, but I have NOTHING to show for it. I barely make rent, I've cut back a ton of expenses, I don't even own a car. Is this how it always has been or is this just a recent trend with sales companies and I should try to get out? I like sales, and I'm always ranked one of the top of my peers, I feel I should be compensated for my hard work like people in other industries. Why do I feel like sales people get the shaft?

Maybe it's just the way things are with the economy? Someone explain to me, I'm borderline depressed of how little I've gotten financially in 3.5 years of hard work.

[Intergalactic]

If you can make sales, you can always keep switching jobs until you get one that pays more than a pittance.

[reppin_the_847]

Agreed. I feel like there's a lot of scam-like companies that claim to be b2b organizations. After a couple interviews you realize that there is zero base pay, the job requires face to face sales, and is pure commission.

My advice for prospective salespeople is to seek out jobs with solid companies that offer a base salary, and then commission on top of it. Granted, such nice sales positions are becoming increasingly "slim pickin's" in today's economy. Sounds like you did have a base and commission, and still found it incredibly hard to save. I totally know what you mean. In any case, good luck with the future!

Originally Posted by cdubs3201

I'm trying to find out if this is a local Chicago trend vs. National, recent vs old. I've noticed now for 3 years since entering the sales workforce that many phone sales/inside sales companies hire many young recent college graduates with promises of large commission payouts and job growth, only to suck them dry with 12 hour work days and then layoffs.

Examples: First company I worked for 2.5 years, put in 12 hour days, got good at my job, took a small promotion, but had to take a step back in pay for it. A year after promotion, restructured my sales district and cut my pay in half and altered my commission structure.

Second company I work for now, been here 8 months, was enticed with a decent base salary (not enough to live on, but in sales a base salary is not something to take for granted). However, the commission structure has changed 3 times in 8 months and I make next to nothing in commissions. I may be years away from a promotion or increase in salary.

I'm now looking for my third job in 3.5 years. I'm a hard worker, I've developed very good sales skills and valuable business relationships in Chicago, but I have NOTHING to show for it. I barely make rent, I've cut back a ton of expenses, I don't even own a car. Is this how it always has been or is this just a recent trend with sales companies and I should try to get out? I like sales, and I'm always ranked one of the top of my peers, I feel I should be compensated for my hard work like people in other industries. Why do I feel like sales people get the shaft?

Maybe it's just the way things are with the economy? Someone explain to me, I'm borderline depressed of how little I've gotten financially in 3.5 years of hard work.

[long101]

I work in sales as well and sadly its a pretty common tale. I do work for a very large company and we have restructuring of segments, comission changes, and other things. Some people do get screwed when these things happen and some people benefit. At least at my company I see the moves as benefiting the company and our clients (this could be the opposite for you). If I were you I would look into some reputable larger companies and do your homework. Read up on sites that employees review their companies, but dont take all of those reviews to heart-alot of people that post on their were fired cuz they suck. If you are pretty good at what you do and hit your #s I cant see how you wouldnt suceed with a good company.

My pay mostly consists of bonuses and comission. Which obviously means that in tought times like this I am strapped for cash, but I do have a very high earning potential...

[cdubs3201]

Originally Posted by long101

I work in sales as well and sadly its a pretty common tale. I do work for a very large company and we have restructuring of segments, comission changes, and other things. Some people do get screwed when these things happen and some people benefit. At least at my company I see the moves as benefiting the company and our clients (this could be the opposite for you). If I were you I would look into some reputable larger companies and do your homework. Read up on sites that employees review their companies, but dont take all of those reviews to heart-alot of people that post on their were fired cuz they suck. If you are pretty good at what you do and hit your #s I cant see how you wouldnt suceed with a good company.

My pay mostly consists of bonuses and comission. Which obviously means that in tought times like this I am strapped for cash, but I do have a very high earning potential...

Thanks for the advice. I have been doing this more recently now that I'm currently employed and not super desperate for a job. However, even reputable larger companies can pull these stunts as well.

The first job I mentioned was a fortune 500 company, downtown location, and was ranked in the top 100 companies to work for Forbes list for 6+ consecutive years.

I was almost thinking of going the other direction, a smaller company. They would be more reliant on sales people and wouldn't benefit from a revolving door like big companies seem to have at their offices.

[tb4000]

Any sales position offering only commission, massive red flag, no matter how much they claim the earning potential is unlimited. It may be, but if you ain't creating deals, the earning potential is moot.

[Tenzo]

Generally the higher the base the lower the commission and the other way around.

In my first sales job in Chicago I worked 100% commission with a guaranteed minimum. That worked pretty well since I could live on the minimum.

[lenniel]

You need to do a better job of researching these companies before you start interviewing. If they won't explain the comp plan during a phone screen, walk away. It basiacally means the comp plan sucks and they just want to 'sell' you by dazzling you with the 'potential'. In many low level sales position, you're a commidity. They don't care if turnover is high because it's easy for someone new and eager who was sold on the potential to come in and replace you. i realize sometimes you just need to job to earn a paycheck but sometimes it's better to find a better opportunity rather than taking whatever comes along.

[long101]

Originally Posted by Tenzo

In my first sales job in Chicago I worked 100% commission with a guaranteed minimum. That worked pretty well since I could live on the minimum.

how was it 100% commission if there was a guaranteed minimum

[ajolotl]

I assume meant 100% commission assuming he surpassed the minimum (ie a draw).

Originally Posted by long101

how was it 100% commission if there was a guaranteed minimum