The commissions are still set based on how much the company wants to keep vs how much they want to compensate and motivate their sales people. They aren’t paid like regular employees, yes, if they don’t sell they don’t get paid. That is a bit more risk than we have to take on, and many sales people don’t make it for very long (as always, the ones we are aware of are filtered via survivor bias).
True, but the pressure on the company to pay high commissions is much more than for a typical employee. And unlike an employee's work, their total compensation is much more correlated with performance.
I can work like crazy and not have an idea on whether I'll get a bonus, and if I do, how much. And I still have to work regular hours.
Someone in sales has a much clearer idea how much extra he can make and how to get there.
And it's a common occurrence that a top performer simply takes it easy for a few weeks (e.g. not come in to the office or work only 3 hours per day) as they made so much money after a big win. Their hours are a lot more flexible. Of course, most are not top performers and do end up working long hours.
As a software engineer working for a FAANG, I’m not really envious if sales people anymore. Perhaps our situation is temporary, but I believe programmers, at least, have reached a parity in sales compensations without the risks.
