Lesson 8 of 8 · 12 min

The Arrangement

What a 1099 independent contractor actually is, how the pay is structured, and the rules that are not negotiable.

When you finish this lesson you can

  • Explain the working arrangement accurately, including to yourself.
  • State how commission is structured without quoting a number.
  • Recite the rules that end the arrangement if broken.

What you are

A 1099 independent contractor. Commission only, no base salary and no draw. You are not an employee, and the difference is real - you run your own small business, you set your own hours, you cover your own expenses and you handle your own taxes.

Get set up properly. It is not complicated and it is not something to put off. If you do not know how, ask - it is a reasonable question and it is better asked now than in April.

How the pay is structured

Commission is set individually, and it moves as you do. What you earn on a sale depends on your experience and how much of it you carry - a rep who finds the lead and hands it over is in a different position from one who runs the whole thing.

There is a starter arrangement for people new to it, where you make the introduction and we handle the pitch and the close. It is a real way in and there is nothing embarrassing about starting there.

It repeats. You are paid again every time a client of yours takes on another service, and again when they re-sign. That is why the review conversation matters more than the first sale.

Your own terms are in your own agreement. This training does not set them and no page on this site sets them.

The rule we will not bend

We will not quote you an income. We do not know what you will sell, and anyone who puts a number in front of you before they have met you is guessing.

That protects you first - it is why nobody here can talk you into a decision with a number that was never real. And it binds you too: you do not quote an income to the next person who asks about this job, ever, in any form. Not a range, not what somebody else did, not what is possible. That one is not a style preference.

The rest of the rules

  • No promised rankings, placements, leads or revenue - to anyone, in writing or out loud.
  • No income figures to prospects, customers or people asking about the role.
  • Quote from published pages. Where scope drives the price, say so and get it in writing.
  • Do not invent capability. If you are not sure we do it, find out before you sell it.
  • Stay inside the lines - legal, ethical, and inside the platforms' own rules. If a shortcut needs explaining, it is not one.
  • Do not sell to or from the charity. Different company, different purpose, hard line.

What the company owes you

Training that is actually training, published prices you can show a customer without flinching, and work that gets delivered after you sell it. If any of those three is missing on a job, say so - that is a fault worth raising and it will be dealt with.

What is not owed to you is a number. Nobody here will tell you what you will make, and the day somebody does, something has gone wrong.

Flashcards

Click a card to turn it over.

Check yourself

Nothing is recorded and nothing is scored. This is for you.

Someone asks what they could make in this role.

Why: No range, no example, no what is possible. Anyone who puts a number in front of you before they have met you is guessing.

Which is true of a 1099 contractor?

Why: Commission only, no base and no draw. Get set up properly early rather than in April.

Where do your commission terms come from?

Why: Commission is set individually. The training describes the structure; the agreement sets your terms.

A customer wants something we may not actually do, and the deal is close.

Why: Do not invent capability. Probably is a promise wearing a hat, and it lands back on you.

Work to do away from the screen

  • Write, in your own words, what being a 1099 contractor means for you practically. Three lines.
  • Write your answer to what will I make. Word for word, so it is ready.
  • List the six rules from memory. Check them. The ones you missed are the ones to reread.
Printable workbook (PDF)