Finance Questions Continued

Today we have some more thoughts on individual questions. Remember, these are just my thoughts and opinions and someone with 5 years in the accounting or other finance-related industry probably has a different answer than I do. And someone with 25 years probably has a third answer. So use the information below, collect many opinions, and compile a decent cross section of thought. Then, hope for the best.

Question: I am getting an M.B.A in finance. I got a job offer at an insurance company where they sell insurance and mutual founds. They job is by commission. Will this job help me towards my financial career? --Miguel, IL

This question actually relates to the previous question about experience in the job market. How do you get the needed experience to land a job when the job is what you need to get the experience? Miguel actually hit on an idea I didn't mention specifically that fits the needed criteria. A commissioned job is a beautiful chance to take a position where most responsibilities are on sales. Therefore, the management can put some trust in you for that task because if you fail, you don't pull down the whole business and they can easily replace you with another new team member.

That worse cast scenario said, I think the opportunity it presents is exactly what you need to break into your career. Because its a commission based position, the company only pays you if you sell! That is, they only pay you if you do good work for the company. Thus, success in a commissioned position is both an indication to the employer that you can handle your job and perhaps more responsibility, and a signal to other employers that may have had doubts if you had walked int the door with a slim resume.

A commission sales position might be that foot in the door that breaks the experience/job cycle. A big company may think "why not give this one a chance" and hire numerous sales people, only to retain the best. Its like a free test for the company, and they always win. I know one friend who graduated with a bachelor's degree and went to work as a commissioned sales intern for a basketball team. It was a competitive program to get into in the first place and after accepting about 20 people for one year, only 2 were offered full-time position.

I say yes: a commissioned position will help your career in general. I can't say whether or not a specific commissioned position with insurance or mutual funds will help if you want to go into investment banking or something specific--it can't hurt, but I'm saying it might not be the best entry when other options are available.