Commission only jobs - be safe

Hi,

I just received an email from a friend who is struggling to find work. He is based in the UK - so this isn't just happening in the US. He was offered a job at a boutique with commission only. I told him that it's a way for these small firms to take advantage of junior bankers. They can't afford to have people on their payroll, so they advertise commission-only jobs. Most on these commission only salary can't even pay the bills.

Please don't fall for these fictitious jobs. Those are not real jobs. If you close a deal, they win (you might get $1000 which is a peanut). If you don't, you get paid $0, they still win.

They take advantage of those who are made redundant (it's hard to get back in) or can't find work. They are vulnerable.

These (commission-only) jobs are only for non-target college students. Students can do this while they are still at school and improve their resumes. If they actually pay $1000 (I doubt they do), it's good pocket money.

Be safe and careful.

 
Edmundo Braverman:

Worked commission-only jobs my entire career on Wall Street. You're right, you can't make any money at it.

You're probably right about that non-target college thing, though. I only had a high school diploma.

What did you sell right out of high school to make that? It looks like some type of financial security (Hence # of trades). Whatever it was you must have had connections. I'm going to state the obvious here, making $41,488 in one week is not realistic for most people. Even in 1999. With the evolution of the internet, broker's commissions are obviously garbage now.

 

I joined the Marines right out of high school (the day after I graduated, actually) and did five years in the Corps. After that I got out and got into equities in 1992. The commission sheet you see here is after I made the move to commodities in the late 90s.

I only ever had one connection: a telephone connection. Literally everyone I ever did business with was a cold call or a referral from a cold call.

 

I interned unpaid at a place like this my sophomore year. Networked my ass off junior year, and with some spinning, I'm going to a top bank this summer. So a place like this can be 'helpful,' but in terms of my actual experience there/skills learned, it was fucking pointless and miserable.

 

This is an old thread, but this is for brokering (so licencing), right? It's not uncommon for brokers, but not ideal at all. At least ask for minimum wage (as a base salary). You will be commuting to the office, right, You will be paying for your lunch etc.

It is a serious problem if this is an IBD boutique offering volunteering opportunities (unpaid, no base salary). Trust me, you won't be bringing in any deal - it is not that easy to source new clients and/or close existing deals. That means you will be getting zero commission - means zero salary.

When I did an unpaid internship (or volunteering where I paid for the commute and I had to bring a laptop everyday - no PC) at a chopshop in NYC (I can't believe they are still operational today!), there was a deal that was just sitting on their book for 1 year with no progress at all. I can't believe the client paid the retainers. But at least I was told that it was unpaid work experience upfront.

They can't afford to pay analysts and associates, so they have these fee structures. They have nothing to do with "incentive."

They don't want to advertise "Unpaid work experience, XXX boutique, We close 2 - 5 deals a year and can't pay analysts and associates. But we can offer you unpaid work experience in an IBD boutique to vulnerable, young and desperate people who want to "break-in" to the world of finance."

 

sounds janky... you get paid a cut, what %? i doubt the max upside you could get is way more than what an analyst is usually paid...

========================================= We are excited to formally extend to you an offer to join Bank of Ameria
 

Dolores quia ea doloremque. Ipsa rerum debitis voluptas et sit reprehenderit. Maxime nesciunt voluptate corporis veritatis minus sed rem. Architecto quas voluptas aperiam aut.

Fugit deserunt aut cupiditate sunt debitis eveniet natus. Saepe quasi et dolores velit enim autem. Qui voluptatem ea aliquam est voluptatem nam. Aspernatur sapiente voluptatem adipisci aut enim impedit.

Nulla et voluptatem qui voluptas est nesciunt minima. Molestiae et dolorem recusandae aspernatur veritatis.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
DrApeman's picture
DrApeman
98.9
6
GameTheory's picture
GameTheory
98.9
7
dosk17's picture
dosk17
98.9
8
kanon's picture
kanon
98.9
9
CompBanker's picture
CompBanker
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”