Earnings Compensation methods vary significantly by the type of firm and product sold. However, most employers use a combination of salary and commission or salary plus bonus. Commissions are usually based on the amount of sales, whereas bonuses may depend on individual performance, on the performance of all sales workers in the group or district, or on the company's performance. Earnings vary by experience and the type of goods or services sold. In addition to their earnings, sales representatives are usually reimbursed for expenses such as transportation costs, meals, hotels, and entertaining customers.
Some companies offer incentives such as free vacation trips or gifts for outstanding sales workers.
Unlike those working directly for a manufacturer or wholesaler, manufacturers' agents get paid strictly on commission. Depending on the type of product they are selling, their experience in the field, and the number of clients, their earnings can be significantly higher or lower than those working in direct sales. In addition, because manufacturers' agents are self-employed, they must pay their own travel and entertainment expenses as well as provide for their own benefits, which can be a significant cost. Related Occupations Manufacturers' and wholesale sales representatives must have sales ability and knowledge of the products they sell. Other occupations that require similar skills are retail, services, real estate, insurance, and securities sales workers, as well as wholesale and retail buyers.