How to Manage Cash Flow as a Commission Only Salesperson

The Feast and Famine Cycle

Commission only income is inherently irregular. You might close three deals in one week and nothing for the next fortnight. The key is accepting this reality upfront and building systems to smooth out the bumps rather than pretending each good month is the new normal.

The Two Account System

Open a separate business account for your commission income. When payments land, transfer a fixed percentage to your personal account as your "salary" and leave the rest as a business buffer. A common split is 60% personal, 20% tax reserve, and 20% business reinvestment. Adjust these ratios based on your situation.

Knowing Your Baseline Number

Calculate your absolute minimum monthly expenses. Rent, food, utilities, insurance, phone. This is your survival number. Every month, this amount needs to be covered before you spend a cent on anything else. Knowing this figure removes a lot of anxiety because it gives you a clear target. Platforms like Zepys can help you see all your pending and confirmed commissions in one place, making this planning easier.

Building Recurring Revenue Streams

Not all commissions are one off. Look for products and services that pay recurring commissions, such as subscriptions, retainers, or ongoing service contracts. Even a small base of recurring commission income creates stability that lets you take bigger swings on high value one time deals.

Planning for Tax

In Australia, the ATO expects quarterly BAS lodgements if you are registered for GST. Set aside your tax percentage immediately when income arrives, not later. Too many agents get caught at tax time because they spent money that was never really theirs. A good accountant who understands commission based income is worth every dollar.

Emergency Fund Is Non Negotiable

Build and maintain an emergency fund of at least three months of baseline expenses. This is separate from your business buffer. It exists purely to keep the lights on if everything goes sideways. Once it is funded, do not touch it unless it is a genuine emergency.