reporting commission-only salary while working at a start-up

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Ryan Ziemba: Junior | Next Rank: 30 Posts; Posts: 25; Joined: Thu May 27, 2010 8:34 pm; Thanked: 1 times

by Ryan Ziemba » Thu Jan 06, 2011 10:51 am

I currently work as one of 7 members of a start-up but until VC comes in (anywhere from 5-8 mos away) each of us is paid on commission only.

Is there a special way to report this in the work experience section asking for starting and ending compensation?

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Source: Beat The GMAT — The Application Process | Thu Jan 06, 2011 10:51 am

Superduperstudent: Senior | Next Rank: 100 Posts; Posts: 35; Joined: Thu Jan 06, 2011 4:58 pm; Location: USA; Thanked: 3 times; GMAT Score:750

by Superduperstudent » Sun Jan 09, 2011 5:28 pm

Hi Ryan,

Commission is considered income. Your income probably fluctuates from month to month, but there may be a general upward trend. You can compare what you made in your first year to what you made in your most recent year. Simply put in your first year's income, (or that income divided by twelve for monthly as your starting compensation), and your last year's income as the ending compensation.

Good luck!

Go to www.superduperstudent.com for GMAT tutoring and MBA application support!

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Jessica@VeritasPrep: MBA Admissions Consultant; Posts: 247; Joined: Tue Feb 23, 2010 11:27 amFollowed by: 42 members; Location: Houston; Thanked: 52 times; GMAT Score:740

by Jessica@VeritasPrep » Wed Jan 12, 2011 7:16 am

Hi Ryan,

Admissions committees are able to understand that start-up positions and sales positions have less traditional income structures. In fact, many entrepreneurial applicants may even have "negative" income while starting a company. I would try to be as honest/accurate as possible, but, I wouldn't worry too much. I'd probably list "commissions + equity" (fill in the commission number if you can - apx. $5K a month plus equity stake in company (or figure out where to list it - an application may have "other compensation" as a category). If you have a defined stake in the company, you can try to list that. But, if you don't have funding yet, you probably don't know what percentage of the company you will retain, etc.

Hope this helps!

Jessica
MBA Admissions Consultant
Veritas Prep

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