Thoughts on Good Sales Jobs

Recently, I was asked by a relative to help prep her to get a good sales job. We discussed many difficulties she was seeing in the job market. I gave a verbal smackdown to nearly half of the ads I saw, once we read through them, and she interviewed with them, and we found out what they were really about.

I thought I would compile a list of warning signs for potential jobs in sales:

Red Flag 1:
The company frequently uses the word "Potential"

Fact is, my wife cannot buy shoes with "potential."
It is my experience that companies offer "potential" instead of "money."
Sadly, it is very common that the "potential" doesn't really exist, either.


Red Flag 2:
The operation is known to "churn & burn"

It is well known that keeping employees is far more cost-productive. However, some companies are so short-sighted, that they recycle the low level employees frequently so that they can keep pay low.


Red Flag 3:
The company changes base pay.

Some companies offer a higher base for a while, then reduce it. Why?
If they can offer it for a while, then they can certainly afford it.

What this indicates is that the company is willing to screw people over on pay. This is never a good sign.


Red Flag 4:
The company has a very complex commission plan.

Companies do this so they can have an excuse to get out of paying commissions.
In my experience, this is no different than Red Flag 3, because it's just another way for the company to cheat the salesman out of money due.


Red Flag 5:
The company wants you to prove yourself for a trial period. 

Companies that do this either do not trust their product, or their hiring methods, or both.


Red Flag 6:
Company uses the phrase "potential to earn $xx,xxxx"

Here's how to read this:
1. Base + commission:
Take the lower of the "potential" earnings listed, and multiply by 80% to get realistic payout.
Take the realistic payout and multiply by 2/3 to get an approximate base pay, if there is a base pay.

2. Commission only
If it is a commission-only position, it is safe to assume that total realistic pay is 1/2 to 2/3 of the amount stated, if you are a good salesman.

Example of #1:
Suppose they say "potential to earn $65,000 per year."
Take $65K, and multiply by 80%
The result is $52K. This is your realistic maximum, if you are an excellent salesman.

Now, take the result - $52K in this example, and multiply by 2/3.
This yields the likely base pay (if any). In this example, it is about $35K.
Now, move that into a logical range - say $30K - $40K, and that is likely the base pay range.

Note:
Generally, it is very rare that a company will have a compensation structure such that the employee can double the base pay. As in, so rare, I can name the handful of exceptions. No, you probably are not talking about one of them.


Red Flag 7:
Company uses a recruiter to find you, then rejects you, then contacts you after a time. 

Recruiters generally have a 6-month or 1-year term under which if they find you, they are to be paid a fee if the company hires you. This is designed to prevent just this red flag. What often happens with unscrupulous companies is that they will wait until after the  6-months or 1-year, and then contact you so they don't have to pay the recruiter's fee.

This is highly unethical. 

If the company is lacking in ethics in this side of things, what other sides are they unethical in?