Commission-only sales, explained
Updated · ThreeCommas
Short answer
In commission-only sales you are paid a share of the revenue you bring in, with no salary. For software, that usually means 15 to 25% of what each customer pays for 6 to 12 months. It works well when the product already sells, the terms are written down, and your deals are protected.
How commission-only pay works
You find and close customers. Each time one of them pays the business, you earn your share. With a subscription product, they pay every month, so you are paid every month too, for as long as the deal says.
Example: you close four customers on a $300 a month plan at 20% for 12 months. That is $240 a month for a year from those four alone, and every new customer adds to it.
What makes a good commission-only role
A product that already sells. Ask to see real revenue, not a pitch deck. On ThreeCommas it is checked from the company's own Stripe account.
Clear, written terms: the share, how long it lasts, any caps, and what happens if the partnership ends. A tail period (you keep earning for a while after) is a good sign.
Deal protection: a way to register prospects so a deal is yours even if the customer signs up without your link.
Red flags
You have to pay to join or buy stock. Commission only on the first payment of a subscription. No way to see what customers paid. Vague rules about who gets credit.
Questions
Is commission-only sales a real job?
It is real work, usually as an independent contractor rather than an employee. Many experienced reps prefer it because their earnings are not capped by a salary.
How do I get started with no experience?
Start with warm introductions or affiliate-style roles, where you recommend products to people you already know. Build reviews, then move to closing roles.