Should You List Commission on Resume
Listing commission on a resume can be a strategic decision depending on the industry, region, and nature of the position you are applying for. In the United States, it is more common to see commission structures in sales or commission-based roles, but it's becoming increasingly relevant in other sectors such as software development and IT due to performance-based compensation models. However, international standards may vary; some regions place less emphasis on explicitly listing commissions, focusing instead on the base salary or annual income.
Why to List Commission on Resume
- Demonstrates Achievement: Commission is a performance-based incentive that shows an employer your ability to meet or exceed sales targets, close deals, or deliver results effectively. By listing your commission history, you can prove that you have the necessary skills and drive to generate revenue for the company.
- Attracts Employers: High commission earnings can attract potential employers, especially in sales roles where a strong track record of success is highly valued. It can also help you stand out from other candidates with similar skill sets but less proven performance.
- Negotiation Tool: When discussing salary expectations during the interview process, having a history of commission earnings can provide leverage for negotiating a higher base salary or more attractive compensation package.
- Transparency: If the position you're applying for has a commission structure, listing your previous commission experience shows that you are familiar with such payment models and can work effectively within them.
Where to List Commission on Resume
- Professional Experience Section: If your previous roles included commission-based compensation, it is appropriate to include the total commission earned alongside the base salary for each position in the "Professional Experience" section of your resume.
- Salary/Compensation Section: Some job seekers choose to create a separate "Salary/Compensation" or "Income History" section on their resume, where they provide detailed information about both base salary and commission earnings for each relevant role.
- Cover Letter: In some cases, it may be more appropriate to discuss your commission history in your cover letter instead of the resume itself, especially if the position you are applying for does not explicitly mention commission as a component of compensation.
Examples of How to List Commission on Resume
Example 1 - Commission in Professional Experience Section:
Professional Experience
Position | Company Name (Location) | Dates | Base Salary + Commission |
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Sales Representative | ABC Corp (New York) | Jan 2018 - Present | $50,000 base + 7% commission on sales |
Example 2 - Commission in Salary/Compensation Section:
Salary/Compensation History
Position | Company Name (Location) | Dates | Base Salary + Commission Earnings |
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Account Manager | XYZ Inc. (San Francisco) | Jan 2016 - Dec 2017 | $60,000 base + $50,000 commission |
What to Avoid While Listing Commission on Resume
- Vague or Misleading Descriptions: Provide specific details about your commission earnings, such as the percentage of sales you received or the total amount earned during a particular period. Avoid using vague terms like "bonuses" without explaining the source of the bonus.
- Inaccurate Information: Be truthful and transparent when listing your commission history. Incorrect or misleading information can lead to issues during the hiring process or on the job.
- Overshadowing Base Salary: While commission is important, it's essential to also include base salary information to provide a comprehensive picture of your compensation history. This can help potential employers understand your overall financial situation and stability.
- Overemphasis on Commission: If you have a strong base salary with little or no commission, it may not be necessary to list the commission at all unless explicitly asked by the employer. Focus instead on highlighting your achievements in other areas, such as customer satisfaction or sales growth.
How to List Bonus Commission on Resume
Best Practices for Including Bonus Commission in Your Resume
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Clarify the Nature of the Bonus Commission: Clearly indicate that the commission you earned was a bonus, rather than a standard commission structure. This can be done by using phrases like "Earned performance-based bonuses in addition to regular commissions" or "Achieved quarterly and annual sales targets resulting in additional bonus commissions."
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Provide Specific Details: Be as specific as possible when detailing the amount of bonus commission you've earned. For example, instead of saying "Earned substantial bonus commissions," state the exact figures where appropriate, such as "Earned $15,000 in quarterly bonuses."
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Highlight Accomplishments Related to Bonus Commission: Emphasize achievements that directly led to receiving the bonus commission. This could include meeting or exceeding sales targets, developing new business relationships, or implementing strategies that increased overall sales.
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Use Quantifiable Metrics: When possible, use quantitative metrics to demonstrate the impact of your work on earning the bonus commission. For instance, you might say "Increased quarterly sales by 20% which led to a $5,000 bonus commission."
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Align with Job Description: Ensure that the information about your bonus commission is relevant and aligned with the job requirements. If the position you're applying for involves sales or commission-based work, then including this information can help showcase your potential value to the employer.
Example 1: Bonus Commission on Commission Resume
- Sales Representative - XYZ Corporation (2017-Present)
- Achieved quarterly sales targets, resulting in an average of $8,000 in bonus commissions per quarter.
- Developed and maintained relationships with key accounts, resulting in a 35% increase in annual sales.
- Implemented new sales strategies that increased overall sales by 15%.
Example 2: Bonus Commission in Commission Context
- Sales Consultant - ABC Company (2015-2017)
- Earned regular commission based on successful sales, with an average of $10,000 per month.
- Achieved annual sales targets, resulting in a $30,000 bonus commission.
- Implemented new sales processes that improved efficiency and increased sales by 20%.
- In addition to my regular commission structure, I consistently met or exceeded sales targets, earning substantial performance-based bonuses.
How to List Residual or Override Commission on Resume
Best Practices for Including Residual or Override Commission in Your Resume
1. Highlight the nature of the commission:
- Clearly specify that the commission is a 'Residual' or 'Override' commission to differentiate it from base or upfront commissions. This provides a better understanding of your income structure and its potential for future earnings.
Example: "Earned residual commissions on recurring monthly subscription sales, which accounted for 30% of my total annual earnings."
2. Provide context about the commission structure:
- Explain how you qualified for the commission, such as meeting certain sales targets or maintaining a high level of customer retention. This gives hiring managers insights into your performance and drive.
Example: "Generated residual commissions by consistently exceeding my monthly sales target in the technology sector."
3. Quantify your commission earnings:
- Offer specific figures to demonstrate the significance of your commission income, as well as its potential for growth. Be sure to indicate whether the figures are total earnings or a percentage of overall income.
Example: "Secured an average monthly residual commission of $2,500, representing 30% of my total annual compensation."
4. Emphasize the value you bring with your commission-driven approach:
- Explain how your focus on commission-based performance has contributed to your company's success and fostered a competitive edge. This demonstrates your ability to drive results and adapt to incentive-based compensation models.
Example: "Achieved over 40% annual growth in residual commissions by implementing targeted sales strategies and maintaining high levels of customer satisfaction."
Example 1: Residual or Override Commission on Commission Resume
[Sales Professional Role]
- Earned residual commissions from recurring monthly subscription sales, accounting for 30% of my total annual earnings.
- Achieved this by consistently exceeding my monthly sales target in the technology sector.
- Generated an average monthly residual commission of $2,500, representing 30% of my total annual compensation.
- Adopted targeted sales strategies and maintained high levels of customer satisfaction to secure over 40% annual growth in residual commissions.
Example 2: Residual or Override Commission in Commission Context
[Account Executive Role]
- Qualified for override commissions on deals closed by my team, which accounted for 50% of my total earnings.
- Earned override commissions by mentoring and developing a high-performing sales team that consistently met their quarterly targets.
- Secured an average override commission of $4,000 per deal, with an average of 10 deals closed each quarter.
- Demonstrated adaptability and leadership skills in a competitive, commission-driven environment.
Best Practices:
- Highlight the nature of the commission: Clearly state that the commission is performance-based, explaining that it is contingent on the sales or achievements made by the individual.
Example: "Performance-Based Sales Commission: Earned up to 20% commission on each sale, with the opportunity for additional bonuses based on quarterly and annual performance."
- Provide context: Explain the circumstances under which the commission was earned, such as the products or services sold, the sales targets achieved, or any other relevant details.
Example: "Achieved a 15% increase in quarterly sales through effective cold-calling and account management, resulting in $50,000 in performance-based commission."
- Quantify the results: Whenever possible, provide numerical data that demonstrates the impact of your performance-based commission earnings.
Example: "Generated over $100,000 in performance-based sales commissions through effective prospecting and relationship building with key clients."
- Tie the commission to specific skills or achievements: Show how your performance-based commission successes are related to important skills or accomplishments that you possess.
Example: "Proven track record of maximizing earnings through strategic account management, resulting in $75,000 in performance-based sales commissions."
- Organize effectively: Group all commission-related information together in a separate section on your resume, and use clear headings to help recruiters quickly find this valuable data.
Example: "Commission Earnings" or "Performance-Based Sales Commission"
In the "Sales Experience" section of your resume, you could list a performance-based commission as follows:
- Regional Account Manager | XYZ Corporation (2018 - Present)
- Managed a portfolio of 50+ key accounts
- Generated $75,000 in annual performance-based commissions through effective account management
- Achieved a 15% increase in quarterly sales through targeted outreach and relationship building
Example 2: Performance-based Commission in Commission Context
In the "Commission Earnings" section of your resume, you could list multiple performance-based commissions like this:
- Commission Earnings (2016 - Present)
- Performance-Based Sales Commission: $75,000 annually from effective account management
- Performance-Based Bonuses: $30,000 quarterly for exceeding sales targets
- Individual Incentive Program Commission: $45,000 for achieving specific company milestones
How to List Recurring Commission on Resume
Listing recurring commission on your resume requires a strategic approach to ensure it stands out and provides valuable insights about your sales or revenue generation capabilities. Here are some best practices:
1. Quantify the Recurring Commission Earnings
Start by clearly stating the amount of recurring commission you have earned in a specific timeframe, such as monthly, quarterly, or annually. Provide concrete numbers to make your achievements more tangible and easier for potential employers to understand. For example:
- "Earned an average monthly recurring commission of $3,000 from a portfolio of 100 clients."
2. Highlight the Source of Recurring Commission
Specify where the recurring commission originates from. This can include details about the products or services you sell, the number of clients, or the types of contracts involved. Employers want to know whether your recurring commissions are derived from ongoing sales, subscriptions, or other sources:
- "Generates recurring commission through regular sales of software licenses to a network of 500 clients."
3. Mention the Frequency and Duration of Recurring Commission
Give an overview of how often you receive your recurring commission and for how long it has been ongoing. This helps recruiters evaluate the consistency and sustainability of your income:
- "Receives quarterly recurring commissions from a stable client base, established over 5 years."
4. Demonstrate Growth in Recurring Commission
If possible, showcase any increases in your recurring commission over time to demonstrate your ability to grow and adapt in the role:
- "Grew monthly recurring commissions by 20% after implementing a new client retention strategy."
Example 1: Recurring Commission on Commission Resume
Sales Representative Position, ABC Corp.
- Generated an average monthly recurring commission of $3,500 from a portfolio of 120 clients
- Earned quarterly recurring commissions through regular sales of software licenses to a network of 600 clients
- Established long-term relationships with key accounts, ensuring consistent revenue and sustainable growth in recurring commission over the past 5 years
Example 2: Recurring Commission in Commission Context
Account Executive Role, XYZ Inc.
- Achieved an average monthly recurring commission of $4,000 from a diverse client base of 300 clients
- Generated regular recurring commissions through subscription services, with a focus on retaining clients and expanding contract offerings
- Demonstrated adaptability in adapting to changes in the market and maintained consistent growth in monthly recurring commission over the past 3 years.
How to List Sales Commission on Resume
Best Practices for Listing Sales Commission:
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Highlight the Impact: Start with a bullet point that quantifies the impact of your sales commission, such as "Generated $XXX,XXX in annual sales, earning a commission of XX%." This immediately showcases your earnings potential to potential employers.
- Example: "Achieved a 10% commission rate on all sales closed, resulting in an average monthly income of $5,000 and a total annual revenue of over $600,000."
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Specify Commission Structure: Clearly explain your commission structure, whether it's based on individual sales, team sales, or a combination. Provide details about any bonuses, overrides, or other incentives that come with the role.
- Example: "Worked under a 50/50 commission structure, earning $XX for every closed deal and an additional XX% bonus on deals exceeding targets."
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Emphasize Key Achievements: Mention any notable achievements or records in sales commissions, such as being among the top performers in your region or consistently meeting/exceeding sales targets.
- Example: "Consistently ranked in the top 5% of sales representatives in terms of commission earnings, achieving an average of XX% above company targets."
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Detail Closing Ratio and Average Sales Cycle: If applicable, include your closing ratio and the average length of a sales cycle to demonstrate your ability to convert leads into customers effectively.
- Example: "Maintained a closing ratio of 30%, achieving an average sale within 2-4 weeks."
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Highlight Relevant Skills: Lastly, don't forget to mention any skills that contributed to your success in sales commissions, such as negotiation, relationship building, or sales forecasting.
- Example: "Developed strong negotiation and closing techniques that resulted in a consistent 30% higher conversion rate compared to industry averages."
Example 1: Sales Commission on Commission Resume
Sales Commission (Commission Structure: XX%)
- Generated an annual revenue of $650,000 through effective sales techniques and a 7% commission rate
- Achieved an average closing ratio of 40%, significantly exceeding company targets
- Consistently ranked among the top 10% of representatives in terms of commission earnings
- Successfully negotiated deals resulting in an average savings of 15% for clients
Example 2: Sales Commission in Commission Context
Sales Commission (Commission Structure: XX%) & Team Sales Commission (XX%)
- Led a team of 4 representatives, achieving a combined commission of $800,000 annually
- Earned an additional 10% on team sales exceeding targets
- Consistently maintained a closing ratio of 35%, resulting in an average sale within 3 weeks
- Developed and implemented effective sales strategies that contributed to the team's success