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If you had to choose between a set base salary or 100% commission, which would you choose and why?

(a) Base salary.
(b) 100% commission.
(c) It depends on the job.
(d) I'm unsure.

1 Answer

4 votes

Final answer:

Choosing between a base salary and 100% commission should be based on personal financial needs, risk tolerance, industry norms, and career goals. A base salary offers more security, while 100% commission can lead to potentially higher but inconsistent earnings. The choice can also influence salary negotiations, and it's important to avoid illegal interview questions that can lead to discrimination.

Step-by-step explanation:

Choosing between a base salary and 100% commission depends on various factors, and the best choice can vary greatly depending on the specific job and one's personal circumstances. A base salary provides a consistent and secure income, which can be highly valuable for financial planning and stability. However, a 100% commission-based income has the potential for higher earnings, especially in high-sales roles, although it comes with the risk of income variability and periods with low or no earnings.

It's important to consider the nature of the industry, your own risk tolerance, financial responsibilities, and career goals when deciding. Moreover, in job negotiations, if you're faced with multiple offers or are unsure about the compensation structure, it can be an opportunity to negotiate your salary based on the terms that best suit your needs.

Regarding job interview legality in the United States, it is illegal to ask questions that may lead to discrimination. For example, 'Which state were you born in?' could reveal an applicant's national origin, which is a protected characteristic.

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