Commission-only sales jobs explained: how they work in Australia

A commission-only sales job pays you only when you make a sale. There is no base wage, hourly rate or retainer. In Australia, genuine commission-only arrangements are generally for independent contractors running their own business, because employees must be paid at least their minimum legal entitlements regardless of sales.

This guide explains how commission-only work operates, how commission is calculated, how refunds affect what you earn, and how to tell a fair arrangement from one to avoid.

What does commission-only mean?

Commission is a payment linked to a sale. Under a commission-only arrangement, it is your whole income from that work. If you sell nothing in a month, you earn nothing from it that month. If you sell a lot, there is usually no cap.

That is different from a salary-plus-commission role, where you receive a wage and commission is a bonus on top. It is also different from a retainer, where a business pays you a set amount to be available.

Can an employee be paid commission-only in Australia?

Generally, no. Employees in Australia must receive at least their minimum entitlements under the relevant award or agreement and the National Employment Standards. A business can pay an employee commission, but not instead of those minimums.

That is why genuine commission-only work is usually done by independent contractors. As a contractor, you run your own business, typically with an ABN. You decide how, when and where you work. You handle your own tax and generally your own super, and you are not entitled to paid leave.

The label on the agreement is not what matters. What matters is how the relationship works in practice. If a business controls your hours, tells you exactly how to do the work and treats you like staff, you may legally be an employee. Calling an employee a contractor to avoid paying entitlements is sham contracting, and it is illegal. The Fair Work Ombudsman has tools to help you work out which you are.

How is commission calculated?

Most commission falls into one of two shapes, paid on one of two schedules.

Percentage or flat amount?

• Percentage commission is a share of the sale price, such as 15% of each order. It grows as the price grows.
• Flat commission is a fixed amount per sale, such as a set dollar amount for each new customer, whatever they spend.

Percentage commission is common for physical products and services with varied prices. Flat commission is common for sign-ups, bookings and subscriptions.

One-time or recurring?

• One-time commission is paid once for each sale.
• Recurring commission is paid each month the customer stays, usually on subscriptions such as software or memberships. It can build up over time, but it also stops when the customer leaves.

On Open Sales, each offer shows whether its commission is one-time or recurring. Commission rates and the price per sale are shown to verified sellers, which takes about five minutes with an ID and ABN check.

What happens if the customer gets a refund?

Most businesses offer refunds or cooling-off periods, and some are required to. So a sale is not always final the moment it happens. There are two common ways to handle this:

• Pay first, claw back later. You are paid soon after the sale, but if the customer refunds or cancels, that commission is taken back, often from your next payment. This can leave you owing money in a slow month.
• Pay once the sale is final. You are paid only after the refund window closes. You wait a little longer, but what you receive is yours.

The marketplace uses the second approach. The business funds the commission, and once the sale is final, we pay you weekly. You never have to send an invoice or chase payment. Whatever arrangement you consider, ask how refunds are handled before you start.

What does a worked example look like?

Imagine you work on two offers in a month.

Offer A: a one-time sale. A skincare bundle sells for $120 and pays 20% commission. You make 10 sales. Two customers return the product within the refund window.

• Commission per sale: 20% of $120 is $24.
• Sales that become final: 10 minus 2 refunds is 8.
• Commission earned: 8 multiplied by $24 is $192.

Offer B: a recurring sale. A bookkeeping app pays a flat $10 a month for each customer you refer, for as long as they stay subscribed. You refer 6 customers this month.

• First month: 6 multiplied by $10 is $60.
• If 5 of those customers are still subscribed next month, you earn $50 from them then, with no extra selling.

Before tax, your example total for the first month is $252, less any platform fee. Fees on the marketplace are shown before you accept an offer’s terms, so you can work out your own numbers in advance. Remember that as a contractor, tax is your responsibility, so set some of each payment aside.

What are the red flags in a commission-only job?

Walk away, or at least ask hard questions, if you see any of these:

• Upfront fees. You are asked to pay for training, a starter kit, leads or a joining fee before you can earn anything.
• No written agreement. The commission rate, what counts as a sale and when you are paid should all be in writing.
• Vague tracking. If nobody can explain how your sales are attributed to you, you may not get credit for them.
• Pressure to mislead. You are encouraged to overstate results, hide costs or push customers who do not need the product. Misleading customers can breach Australian Consumer Law, and it will cost you trust.
• Employee treatment without employee pay. Set rosters, close supervision and mandatory targets, but no wage or entitlements.
• Recruiting over selling. Income mostly comes from signing up other sellers rather than from selling to real customers.

What does a good commission arrangement look like?

The green flags are mostly the opposite:

• A clear, plain-English agreement you can read before you commit.
• Automatic tracking you can see, such as tracked links, codes or store integrations.
• A defined point when a sale is final, and a regular payment schedule.
• Honest product information and training, so you can answer customer questions accurately.
• A business that is verified and rated by other sellers.
• Freedom to choose your own hours and methods, as a genuine contractor should have.

If you want to compare fields, browse offers in areas like finance or health and beauty, or see all industries.

Is commission-only work right for me?

It suits people who are comfortable with variable income, already have an audience or network, or want to sell alongside other work. It suits people less if they need a predictable wage from day one. If you are still weighing options, our guide on where to find work as a salesperson compares employed and independent routes side by side. If you are ready to set up, read how to start selling on commission with an ABN.

This article is general information, not legal or tax advice. For your situation, check with the ATO, business.gov.au or an accountant.

Want commission terms you can read up front?

Every offer on the marketplace comes with a plain-English agreement, automatic tracking and weekly payment once each sale is final. Joining is free, and fees are shown before you accept any terms. Sign up as a seller to verify your details and see real commission rates.