Fixed salary versus salary based on commission?
By paopaolar
@paopaolar (226)
Philippines
November 21, 2011 3:10pm CST
Hi fellow mylotters! I would just like to know if you prefer I fixed salary over a salary based on commission? I guess if you are a risk-taker you would choose salary based on commission but if you are risk-avert you would take the fixed salary. However if you don't care at all and just want a job you are a risk-neutral and you're happy with either of the two. Any thoughts?
2 people like this
7 responses
@beamer88 (4259)
• Philippines
21 Nov 11
You're definitely right. Commission-based salaries entail a lot of risk as compared to having a fixed income. But the potential to earn more is why some people prefer to take such a risk. But I guess there are other factors that we have to consider, like the immediate financial obligations we currently have, say tuition of our kids, a mortgage to pay, loans, our every day expenses that includes utility bills and stuff. Personally, I prefer working on a commission-based compensation since what I make is really dependent on the effort I put in. But even if I want to take the risk, I presently can't. So I need a fixed income just to cover the bills.
1 person likes this
@paopaolar (226)
• Philippines
22 Nov 11
In other words fixed salaries can give security to our family. :)
@magtibaygom (4858)
• Philippines
21 Nov 11
I earn commissions, and not based on fixed salary, because I am a self-employed. It's great, and I earn big. But I admit, I envy those people who earn fixed salary. You know why? They seem to be more relaxed and have peace of mind, unlike us, who are compelled to work really hard to earn our commissions. But maybe they are too, envying us, for the time freedom we enjoy that they don't have.
@paopaolar (226)
• Philippines
22 Nov 11
Yes a lot of time people envy each other for the things that they do not have. Like the straight haired wants to be curly and the curly wants to have straight hair. It is such a crazy world! :)
@lilaclady (28207)
• Australia
21 Nov 11
I guess that depends on what opportunities to get the commissions as some areas it would be hard to get, and I guess it also depends on how good you are to get those commissions so I so would prefer a fixed salary I think as I don't have that much confidence in myself I guess.
1 person likes this
@Porcospino (31366)
• Denmark
27 Nov 11
I have tried both and I think there are advantages about both things. When you have a fixed income you know how much you earn every month and you know that you will have enough money to pay your bills. That makes it easier to relax and easier to plan ahead, because you know what the next month is going to look like. I like that and today where I have bought a house and have loans and many bills I prefer a fixed income.
My favourite thing about a salary based on commission was the freedom that I had. I made my own goals about how much I wanted to sell every week and every month and I was able to plan my own days the way I wanted, I liked that a lot. I also liked the fact that I had the chance to earn more if I worked harder. The money that I earned depended on the things I sold, but I was able to work as many hours if I wanted to, and I liked the fact the my salary depended on my own efforts.
@vandana7 (100254)
• India
23 Nov 11
It depends upon other factors like how well disciplined you are, how realistically you've estimated your capabilities and the likely commissions. There are plenty of folks who are overoptimistic about everything. It also depends upon your commitments, and responsibilities. If you have taken loans, or propose to take loans then fixed salary would be more attractive. Likewise, if you have kids whose education needs to be financed, fixed would be more appealing. But if you do not have such constraints, and if you've done your home work, then taking that little risk may well be worth it.
@francismalz (520)
• Philippines
1 Dec 11
I prefer commissions when the commissions I have is already higher than a fixed salary. I advise those who plan to earn on commissions to consider them as part-time. You still need the fixed salary to pay for your expenses like transportation and electricity and most especially your electricity if you are earning commissions online