Negotiate Commission Structures

Here's a question that keeps salespeople up at night: How do you ask for more compensation when you're getting competitive external job offers without sounding like you're issuing an ultimatum? That's the question posed by Brady from Arkansas. Brady's been getting legitimate job offers from recruiters, and he's wondering how to leverage these opportunities into better compensation at his current company without burning bridges or coming across as disloyal. If you've ever found yourself in this position, you know it's a delicate dance. You want to be paid what you're worth, but you also don't want to destroy the relationships and goodwill you've built. So how do you navigate this conversation? The Right Way to Have the Conversation If you're getting external job offers from legitimate companies with strong brands, the key is in how you frame the conversation with your boss. Here's the approach: "I really like working here, and I want to stay at this company. I love it. But I've got another company out there that's a good company. They're a great brand, they're well known, and they're making this job offer to me at a significantly higher level of compensation. It's hard for me to say no to that. I feel like I need to bring this to you before I make a decision because I like working here." Notice what you're NOT saying. You're not walking in with an ultimatum saying, "If you don't give me this, I'm leaving." Instead, you're saying, "I want to stay here. I like it here. I'm just in a situation where they're offering me enough that it's turning my head and I'm looking their way." This approach keeps the door open for a productive conversation about what might be possible without threatening your current employer or damaging your relationship. When Loyalty Actually Matters Now, before you go schedule that meeting with your boss, you need to ask yourself a hard question: Do you owe this company some loyalty? If you were down on your luck, lost a job, and they came along and gave you something that saved you, you probably owe them some loyalty for that. Not forever, but there's a little bit of honor in not just jumping to the next place immediately. You also need to think about your resume. If you've just got there and a year later you're jumping to another place, that's on your resume. And believe it or not, even in today's world, that still means something. I won't hire people who jump from job to job every year. I don't care how good they are because they're probably going to jump again. So think long term: Am I demonstrating to a future employer that I'm worth investing more money in? The answer is yes when you gave them three years of your life, performed at a really high level, and now you're going to leverage that to go level up elsewhere. Speaking Your Boss's Language Here's what most salespeople get wrong when asking for more money: They forget to speak the language their boss understands. If you walk into your sales leader's office and say, "I want to make more money," you know what they're going to tell you? "Go sell more." And they're right. If you've got a great compensation plan with no limit on how much commission you can make, the answer is simple: crank out more sales. So before you ask for more base salary, ask yourself: Do I have a limit on how much commission I can make? If the answer is no, then your first conversation should be about getting bigger opportunities. Try this approach: "I can sell. I'm hitting numbers, but I'm not making the money I want. What can you do to give me bigger accounts, bigger opportunities, bigger customers? Give me better leads. What can you do to get me in a situation where I can earn more?" This is speaking the boss's language. You're showing that you want to produce more, not just get paid more for the same work. If you get shut down in that situation, then you have another conversation. The Commission vs. Base Salary Play If you're a baller and you've proven you can sell, here's a move most salespeople never consider when negotiating compensation: Ask for a higher commission percentage instead of a higher base salary. I honestly don't care about base. I think a base matters when you're getting started, and it's nice to have, but I would much rather have a higher commission percentage than a higher base. Here's how you position it: "In the open market, I can take a similar job and make $400,000. I want to make the same thing here. Now there's two ways we could do this. One is that you can increase my base salary. Two is you give me a higher commission rate, and I think the commission rate should be this. I think I'm worth that." What you're basically saying is that your cost of sales is going to be variable. They only pay you if you sell it, so their carrying costs stay the same. In my company, the people who don't take a base salary make more than double in commission what people who do take a base salary bring home. There's a massive difference because the people saying "pay me more commission" are saying "I'm willing to put skin in the game in order to make more." Now, this doesn't work if you're at a massive company with a thousand salespeople and rigid HR policies. But if you work for a smaller organization where people can make decisions, have an honest conversation around this approach. You might even propose a tiered structure: "You can pay me your base commission on everything up to the quota you gave me. But once I cross that quota, I want my commission to roll up so that if I get over this number, the rate scales." That's a conversation most entrepreneurial leaders will entertain because it's putting your money where your mouth is. What Money Can't Buy Here's the thing most people miss when they're chasing the next big paycheck: There's always money out there you can chase. You have an obligation to yourself and your family to make as much as you possibly can in sales. But there's also the value of working in a place that values you. There's more than just the money. There's the freedom, the flexibility, and the opportunity to be part of something that gives you purpose. I had somebody come to me recently and ask this question, and I said, "This job that you're moving to that's going to pay you all this money, suddenly you're going to have someone who's micromanaging and telling you what to do every single day. In your current role, you're not making as much money, but you call the shots on your day every single day. Nobody even messes with you. Are you willing to sign up for that?" They said their wife told them the exact same thing. Maybe that's a sign that having the freedom and flexibility is more valuable than making a lot of money but being miserable because everything you do is being micromanaged. The Bottom Line When it's time to ask for more money, remember these principles: Bring the conversation to your boss before making a decision. Frame it as wanting to stay, not threatening to leave. Consider what you owe in loyalty. If they gave you a chance when you needed one, factor that into your decision. Speak your boss's language. Ask for bigger opportunities before asking for more base pay. Consider the commission play. If you're confident in your abilities, asking for higher commission rates can be more lucrative than base salary increases when looking at total compensation. Weigh the intangibles. Money isn't everything if you're trading freedom and fulfillment for a micromanaged existence. The best compensation conversations happen when you approach them with confidence, gratitude, and a clear understanding of your value. That's how you get paid what you're worth without burning bridges along the way. Want to learn more about leveraging your personal brand to create more career opportunities? Check out Jeb's newest book, The LinkedIn Edge, and discover how to turn your LinkedIn profile into a powerful career and sales tool.