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Being An Independent Contractor In Sales

If you are in sales you are either a W-2 employee, with a nice benefits package and salary. On the other hand, you may be like myself and countless others who are independent contractors, which means we are on our own when it comes to benefits, wages and overhead. In other words, we are self-employed.

With any situation like this there are advantages and disadvantages. A few of the advantages are:

  • You work when you want. You are not bound to a schedule, generally speaking. But if you want or need a vacation, you can do so whenever you care to. Personally, I like to work late at night or early in the morning when I don't have a lot of interruptions. If my work is finished I can "clock out" when everyone else is starting their day. 
  • Lots of tax deductions. I write off everything I can because I'm self-employed. If I take a client out for coffee or a meal, I write it off. Travel expenses, including gas and lodging, are also written off. Work from home? I have a home office deduction. Have a good CPA help you with this. It will be money well spent.
  • No dress code. Yes, when I'm with a client I dress professionally, but if I am working from home or virtually, I wear whatever is comfortable. Since I'm not going into an office I can ditch the tie. 
  • No boss. Okay, you may have some sort of a sales upline, but for the most part these people are there as a resource for you. Since you are working for yourself they really can't tell you what to do.


Of course there is a downside to the 1099 situation. Here are a few disadvantages:

  • You have no benefits. When it comes to health insurance, life, dental and vision and other kinds of "employee perks", you will be on your own finding them. Generally speaking, it may be more expensive but you can afford it with all the extra money you're making. 
  • If you don't work, you don't get paid. There are no salaries, so you may want to stash some money away when sales are slow. Generally speaking, December is always pretty slow for me as no one really wants insurance during the holidays. Knowing in advance when the down times will happen helps you to prepare.
  • Being your own boss. Yes, this goes into the list above, but some people simply are not very organized, much less have the skills to be a business person. I know a gentleman who is an excellent engineer, but can't balance his own checkbook. It's great to know your work, but you need to have some basic business skills as well.
  • The company can "fire" you anytime. This is true for those who work seasonally. Since you are not technically an employee, the company is under no obligation to bring you back if they don't need you (or want you).
For many people, starting with a company that offers a salary and benefits may be a good way to find out if sales is the right career for them. In the insurance industry, for example, I encourage people to get their feet wet with a "captive" company, which offers some training, supplies, office space and other perks that can be helpful. If they find they are having success, they may want to move to an "independent" status, where they can actually make more money since commissions are higher.

Being a self-employed 1099 salesperson can be a great career, but make sure you know what you are getting into. 

Chris Castanes is a professional speaker who helps sales people succeed through workshops and humorous presentations. He's also the author of "You're Going To Be Great At This!", a humorous look at sales. For booking information, click here. He's also the president of Surf Financial Brokers selling life and disability insurance in several states.

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