Are you an aspiring entrepreneur looking for profitable business ideas in India? Commission-based ventures offer an exciting opportunity to earn income based on sales or referrals. In a commission-based business, your earnings are directly tied to your ability to generate revenue for the products or services you promote. With a rapidly growing market and a diverse range of industries, India presents a promising landscape for commission-based entrepreneurs. In this guide, we will explore various commission-based business ideas that have proven to be profitable in the Indian market. From affiliate marketing and network marketing to real estate and insurance sales, we will showcase opportunities that can help you capitalize on your sales skills and entrepreneurial spirit. Whether you are seeking a full-time venture or a side hustle, join us as we shed light on the world of commission-based ventures in India and discover profitable business ideas that can pave the way to financial success.
From affiliate marketing to insurance agents, we have covered a wide range of commission-based businesses in India. We will also discuss their earning potential, required skills, and other essential details.
Read on to find out more!
What is a commission-based business or job?
A commission-based business is one in which you earn a commission for the sales you or your team make. In other words, you receive a portion of the money that comes from the sales you make.
But the earnings can vary and be hard to predict because they depend on how well a person sells or brings in money.
There are commission-based jobs in many fields, such as real estate, insurance, retail, and finance. Some companies also offer commission-based pay for jobs like recruiters, consultants, marketing professionals, and sales jobs.
What are the Benefits of grabbing commission-based business opportunities in India ?
A commission-based business can offer several benefits, including:
- Unlimited Earning Potential: The more you sell or the more clients you bring in, the more money you can make. This means there is no cap on your income, and you can earn much more than you would in a salaried position.
- Flexibility: It offers a lot of flexibility in terms of your work schedule. You can often work from home or set your hours, which can be especially helpful for people who need to balance work with other commitments.
- Control Over Your Income: You have more control over your income. You can set your own sales targets and work harder to achieve them, which can help you earn more money. You can also focus your efforts on the products or services that offer the highest commissions, which can help you maximize your earnings.
- Motivation: This type of business can be very motivating. Since your income is directly tied to your performance, you have a strong incentive to work harder and achieve better results.
- Entrepreneurial Opportunities: You can work as an independent contractor for a company or start your own business and work with multiple clients. This can allow you to be your own boss and build a business that is based on your skills and interests.
What are the 15 best commission-based businesses in India that you can commence?
|Occupation||Average Profit/Income||Commission Rate|
|Real Estate Agent||2-6 lakhs monthly||5-6%|
|Insurance Agent||At least 2 lakhs annually||20-35%|
|Mutual fund distributor||0.1-4.9 lakhs annually||0.1-2%|
|Travel Agent||At least 2.3 lakhs annually||Domestic Tickets (0-5%), International Tickets (10-22%)|
|Stockbroker||Around 4 lakhs annually||0.3-0.5% per trade|
|Franchisee||Approx. 18.3 lakhs annually||4% and up to 12%|
|Direct Selling Agent||Minimum 2.2 lahks annually||N/A|
|Affiliate Marketer||0.2-11 lakhs annually||5%, 10%, and 50%|
|Network Marketer||1-4 lakhs annually||N/A|
|Online Marketplace Seller||On average 4 lakhs annually||Depends on the company you choose|
|Art Dealer||Minimum 3 lakhs annually||Up to 60% in the primary market and a minimum of 5% in the secondary market|
|Music Promoter||Minimum 1.8 lakhs annually||Depends on the music promoter|
|Event Planner||2-7 lakhs annually||Not applicable|
|Personal Shopper||3-4.5 lakhs annually||Not applicable|
|Car Salesperson||Depends on how many cars you sell annually||2.5-5%|
There are various commission-based businesses that you can start in the country. Some of them are:
1. Real Estate Agent
In India, real estate is a good business. Real estate agents help connect people who want to buy or sell a property with people who want to buy or sell it. They get paid a commission based on how many the property sells.
People who want to work in the real estate business must get a license from the Real Estate Regulatory Authority (RERA). After you get your license, you can either work for a company or go out on your own. The qualification background is a bachelor’s degree in BBA in real estate or MBA in business management. However, a 12th pass can also become a real estate agent. You have to find clients, find homes to sell, and help buyers and owners make deals.
Income earned by real estate agent: 2–6 lakhs Monthly (Average)
Commission rate: 5-6%
2. Insurance Agent
Insurance agents receive a commission based on the premium the policyholder pays when they sell insurance policies to individuals and businesses.
You must be at least 18 years old and have a high school diploma.
You must also pass an insurance exam and obtain a license from India’s Insurance Regulatory and Development Authority (IRDAI). Once you have the license, you can work for an insurance company or initiate your agency. Build a network of clients and sell insurance policies to them.
Income earned by Insurance agent: At least 2 lakhs annually
Commission rate: 20–35%
3. Mutual fund distributor
Mutual fund distributors sell mutual fund schemes to investors and earn a commission based on the mutual fund’s assets under management (AUM).
You must register with the Association of Mutual Funds in India to become a distributor of mutual funds in India. (AMFI). Once registered, you can work for a mutual fund company or start your own business. You must cultivate a client base and promote mutual fund schemes to them.
Profit earned by mutual fund distributor: 0.1– 4.9 lakhs annually
Commission rate: 0.1–2%
4. Travel Agent
A travel agent is accountable for selling travel packages to customers. They earn a commission based on the price of the travel package.
Before you can work as a travel agent, you have to get a license from the Ministry of Tourism. After that, you can efficiently work for a current travel company or begin your own business. You need to get to know people who might buy holiday packages so you can sell them to them.
Profit earned by travel agent: At least 2.3 lakhs annually
Commission rate: Domestic Tickets (0–5%), International Tickets (10–22%)
A stockbroker is an individual who buys and sells stocks and other securities for clients. Stockbrokers earn a commission based on the value of the securities purchased or sold.
You must register with SEBI (Securities and Exchange Board of India) and receive a stock exchange license to work as a stockbroker in India. You can work for a brokerage company or launch your own business once you get the license. You must create a network of clients so that you can buy and sell stocks on their behalf.
Profit earned by a stockbroker: Around 4 lakhs annually
Commission rate: 0.3–0.5% per trade
A franchisee is a person who runs a business using the brand, products, and services of a larger company. In this way of doing business, the franchisor gives the franchisee a business plan, training, help with marketing, and ongoing help. In return, the franchisee pays a franchise fee and a percentage of their profits to the franchisor. This is considered one of the excellent commission-based business opportunities in India that you can grab.
You can start your own business with the help of an established brand and a proven business model. Fast-food chains, retail stores, education centers, and healthcare services are all popular franchise options in India.
Profit earned by franchisee: Approx. 18.3 lakhs annually
Commission rate: 4% and up to 12%
7. Direct Selling Agent
A direct selling agent is an independent contractor who sells products and services on behalf of a company. The agent is responsible for finding customers, promoting the products, and closing the sale.
You can work from your home. You can also earn a commission on every sale, which means your income potential is unlimited. Some popular direct-selling companies in India include Amway, Avon, Tupperware, and Oriflame.
Profit earned by direct selling agent: Minimum 2.2 lakh annually
Commission rate: N/A
8. Affiliate Marketer
An affiliate marketer promotes products and services on their website or social media channels. In this business model, the affiliate earns a commission for every sale that results from their promotion. The affiliate does not have to create the product or handle customer service.
You can promote various products and services, from books and courses to software and tools. You can also choose the products and services that align with your niche and interests. The key to success as an affiliate marketer is to build an audience and establish trust with your followers.
Profit earned by affiliate marketer: 0.2–11 lakhs annually
Commission rate: 5%, 10%, and 50%
9. Network Marketer
A network marketer is an independent distributor who sells products and services directly to consumers.
It is possible to initiate a business with little money and no stock. You can also use the training and support tools the company and your upline distributors offer. Some successful network marketing companies with a strong foothold in India are Herbalife, Forever Living, and Medicare.
Profit earned by Network Marketer: 1-4 lakh annually
Commission rate: N/A
10. Online Marketplace Seller
An online marketplace seller is an individual who sells products on e-commerce platforms like Amazon, Flipkart, and eBay. The seller lists their products on the platform, handles the fulfillment, and earns a commission on each sale. The platform provides the seller with a large customer base, payment processing, and customer service.
You must reach a large audience and sell ample products, from books and electronics to clothing and home goods. You can also benefit from the platform’s marketing and promotion efforts. However, competition can be fierce, and you need a solid strategy to stand out from the crowd.
Profit earned by online marketplace seller: On an average 4 lakhs annually
Commission rate: Depends on the company you choose
11. Art Dealer
An art dealer buys and sells art pieces, such as paintings, sculptures, and other artwork, on behalf of their clients. They receive a commission for each sale they generate.
As an art broker, you need to like art, know how the art market works, and negotiate well. When looking for art, artists, and venues are good places to start because you can then use your network and the internet to find interested people.
Profit earned by art dealer: Minimum 3 lakhs annually
Commission rate: Up to 60% in the primary market and a minimum of 5% in the secondary market
12. Music Promoter
A person who promotes musical artists and events in order to get people interested and sell tickets is called a “music promoter.” They earn a commission on the revenue generated from ticket sales or other promotions.
Becoming a music promoter requires a love of music, knowledge of the music business, and strong promotional abilities. Getting in touch with local bands and artists is the first step in promoting their music and events via online and offline mediums.
Profit earned by music promoter: Minimum 1.8 lakhs annually
Commission rate: Depends on the music promoter
13. Event Planner
An event planner plans and organizes events, such as weddings, corporate events, and conferences, on behalf of their customers. They earn a commission on the total cost of the event.
To be a good event planner, you need to be good at organizing, paying attention to details, and being able to talk to people. Offer your services to friends and family and then expand your client base through referrals and online marketing.
Profit earned by event planner: 2–7 lakhs annually
Commission rate: Not applicable
14. Personal Shopper
A personal shopper helps individuals shop for clothes, accessories, and other items. They receive a commission on the items they acquire for their clients.
You must have an eye for fashion, good knowledge of different brands and stores, and excellent interpersonal skills. You can begin by offering your services to family and friends and then expand your clientele through word-of-mouth and online marketing.
Profit earned by personal shopper: 3-4.5 lakhs annually
Commission rate: Not applicable
15. Car Salesperson
A car salesperson sells cars on behalf of a car dealership. Your earnings depend on how many cars you sell to the customers.
You can start by approaching car dealerships and expressing your interest in becoming a salesperson or applying for job openings at car dealerships. You only need to have good knowledge of different car models, excellent communication skills, and a passion for sales.
Profit earned by car salesperson: Depends on how many cars you sell annually
Commission rate: 2.5–5%
Endnote – Commission-Based Business In India
These 15 commission-based business ideas in India can be a great way for entrepreneurs to start earning income without a significant upfront investment. However, it’s crucial to choose a business that aligns with your interests and skill set and to work hard to build your network and reputation in your chosen industry.
Frequently asked questions
- How much commission can I expect to earn from a commission-based business in India?
The commission you can earn from a commission-based business will depend on the product or service you are selling, the commission rate the company offers, and the volume of sales you can generate. Typically, commission rates can range from 5% to 20% of the sale price.
- What are the risks of starting a commission-based enterprise in India?
Some risks of starting the business include competition from other sellers, limited earning potential, and the possibility of not earning any commissions if you don’t make any sales.
- Do I need any qualifications to start a commission-based business?
The qualification requirement depends on the type of business you choose. Some businesses may require specific certifications or licenses, while others may not require formal qualifications.
- Is a commission-based business a good option for me?
Commission-based businesses can be a good option if you have the skills and motivation to sell products or services. However, it’s essential to research the industry and understand the risks and rewards before commencing any business.