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.
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.
Commissions-only pay trading gigs - legit? (Originally Posted: 09/12/2013)
One of my high school friends just took a job at a prop trading firm in Chicago and he seemed very excited to work as a 'trader', as a 'front office employee'.
It turns out, his firm doesn't pay him any base salary: it's 100% commissions pay. When I heard this, I immediately began to suspect that this job/ firm is a chop shop.
But my friend seems intent on pursuing his dreams as a trader and he told me 'after a couple of years here getting trading experience, I am gonna lateral out to a hedge fund or some other high end trading shop'. But - is this even realistic, or is my friend being delusional?
your friend is young and may end up in the % that cant make money and let go. Everyone will know why he was let go.. it was not because he was making money
You can make money at these places. It just isn't likely.
No base salary-100% commission (Originally Posted: 05/03/2017)
What do you think of prop trading firms that offer internships to university students and offer no salary but 100% comission? Are they scams?
what company are u talking about
.
Not all, still not very desirable imo, but better than nothing.
Pure commission equity sales? (Originally Posted: 09/03/2015)
I just started at a boutique IB in equity s&t and just realized that the pay salary is low (think 36k). However, that didn't throw me off as the experience is invaluable, but today I realized that the senior sales guys are pure commission. This is scaring me as they have been on a hiring spree as of late due to the low cost of 1st years, and this makes me want to switch firms. What do you guys make of this? Any advice?
Can you do any research of what the new hires at the company get from commission? (think 36k) was pretty specific for base salary lol.
No base, Commission Based IB? (Originally Posted: 05/23/2013)
Hi, I just got an offer from a firm that has an unique pay structure. I honestly don't know what to think of them. They say they have no base salary and just have commission/deal structure. (eg. bringing clients, lead etc, couldn't quite understand the role) Is this something I should consider? They told me that they are sponsoring all series licenses. What should I do?
chop shop... avoid
Sounds like a scam to get you to work for free. Presumably you're coming in as an analyst/associate, so you're probably not going to be bringing in much deal flow. How are you going to support yourself until you are actually able to earn a commission?
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.
Sounds like a lot of sourcing... (read: cold-calling) with no model experience? Shady... but it depends on where you are in your college progression, you could probably spin it somewhat if it's a post-freshman year thing.
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."
Getting paid on commission (Originally Posted: 06/03/2010)
hi guys, does anybody here work for an IB (as an IB analyst, not Sales/Trading/Research) that gets paid strictly on commission. Thus if the bank brings in deals, you see a good cut. If there are no deals, you dont get paid. However, you do receive benefits such as Healthcare and etc. Anyone ever get an offer like this? the bank is a boutique that has a pretty decent healthcare team and they have been seeing more deals since the last 6 months. thanks
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...
Magni quisquam adipisci fugiat quod molestiae. Et nihil saepe consequatur. Doloremque excepturi necessitatibus similique inventore consequatur eum molestiae omnis. Ipsum quia ullam magnam enim quaerat distinctio id. Dicta molestiae accusantium nihil suscipit dolores libero repellat. Voluptas molestias quia laboriosam minima.
Eos dolor maiores et ea ad non pariatur. Laudantium labore ut et totam veniam. Est iure optio natus aut est. In fugiat consequatur in quibusdam suscipit natus dolore aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
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.