Part time commission-only staff

golfman

I came up with a great little business idea over the weekend. I've been researching it all week and it'll work but it is dependant on me taking on about 5 part-timers that I would want to have on a commission-only basis. I'd only need them 2 days a week for a max of 8 hours a day.

Between 1998 - 2002 while I was in college I had a few commission-only jobs and in each on I had to sign a form saying I was self-employed and would file my own tax returns. Would this approach still work ?(or was it ever legal for that matter?!) I really don't want to get involved with employing people and all the hassle that goes with it. Plus I think working on a commission only basis is very rewarding. I had 4 different jobs (3 with the same manager) between the ages of 18 to 22 where I worked on commission only and I have to say I've never been more motivated to sell. In the last job I worked on commission only I even requested to be put on it as I knew I could earn more money that way.

Lots of people frown at the idea of commission only but I think its a great way to make sure your troops are motivated, I know I've never worked so hard.

Ideally, as it would be a cash business I'd love to pay them cash but I imagine thats not allowed either.

Any advise much appreciated.

DubTony

Dont know about the legalities of commission only, but I'm sure it's not an issue.
You can pay people in any manner you like. The main disadvantage of cash is that mistakes can be made. They'll never tell you that you gave them too much, but watch out if you leave them short.

stepbar

Is there a reason why you want to pay cash only? It's a seriously bad way of managing the finances of a business (in terms of paperwork).

golfman

stepbar wrote: »

Is there a reason why you want to pay cash only? It's a seriously bad way of managing the finances of a business (in terms of paperwork).

There's no massive underlying reason. Its just that the sales will be cash sales and I would like to pay the salespeople their commission when the day is over. I just liked getting my money straight away but as I said, its not a massive issue.