Commission-only vs. base plus commission in door-to-door sales
Short answer: Commission-only pay means you earn only on completed sales, usually at a higher rate per sale and usually as a 1099 contractor. Base plus commission means you are paid for your hours or a set salary, plus a smaller bonus per appointment or sale, usually as a W-2 employee. Commission-only puts the risk of a slow week on you. A base puts some of it on the company, and the company pays less per sale in return.
| Commission only | Base plus commission | |
|---|---|---|
| Pay with no sales | None | The hourly wage or salary |
| Pay per sale | Usually higher | Usually lower, because the base is paid either way |
| Who carries a slow week | The rep | Mostly the company |
| Usual classification | 1099 independent contractor | W-2 employee |
| Taxes | Nothing withheld; you pay self-employment tax and quarterly estimates | Withheld from each paycheck by the employer |
| Where it is common | Solar, pest control, home security, roofing, fiber, retail energy | Canvassing and appointment setting in windows, siding, HVAC and gutters; some fiber and telecom providers |
| Typical role | Rep who closes the sale | Canvasser or setter who books the appointment |
| Good fit when | You have savings for the first weeks and want pay tied to results | You need a floor under your income while you learn |
Choose commission only if
- You can cover your bills until your first commissions arrive
- You want the highest pay per sale
- You are closing sales, not only setting appointments
- You are comfortable setting money aside for taxes
Choose base plus commission if
- You cannot go weeks without a paycheck
- You are new and want to learn with less pressure
- You want taxes withheld and, at some companies, benefits
- You are happy to set appointments and move into closing later
How reps move between the two
There is ground in between. A draw advances money against your future commission, and a recoverable draw has to be paid back, so it is a loan, not a base. Some companies pay an hourly training wage for the first weeks and then move reps to commission.
Many reps start on a base as a canvasser, prove they can set appointments that sell, and then move into a commission-only closer role once they know the product.
Questions
Is commission-only pay legal?
Yes, in general. Independent contractors are paid under their contract, and federal wage law exempts employees who work as outside salespeople from minimum wage and overtime. States can set stricter rules, so ask the company how it classifies you and why.
Is a draw the same as a base salary?
No. A base is yours whether or not you sell. A draw is an advance on commission you have not earned yet, and a recoverable draw must be repaid from later commissions. Ask which kind it is and what happens to the balance if you leave.
Should a beginner take commission only or a base?
If you have little savings, start with a base or an hourly canvassing role. If you can cover a month of bills and the company trains well, commission-only roles in short-sale industries such as fiber or pest control can pay off sooner than you expect. Either way, get the pay plan in writing.
Read next
- How Door-to-Door Sales Pay Works
- How to Vet a Door-to-Door Sales Company
- Setter vs. Closer in Door-to-Door Sales