What is a 1099 sales representative?

A 1099 sales representative is a sales professional who works as an independent contractor, not as an employee. The term “1099” comes from the U.S. tax form used to report income paid to non-employees.

Unlike W-2 employees, companies do not withhold taxes, provide benefits, or control day-to-day working hours for 1099 reps.

Instead, 1099 sales reps operate as their own business. They are responsible for managing their taxes, expenses, tools, and sales activity, and they are paid based on results rather than time spent.

Most 1099 sales reps are compensated through commission-only or commission-based structures, meaning they earn a percentage of the revenue or profit they generate.

Many work with multiple non-competing companies, building a portfolio of products or services they sell into the same markets.

As independent contractors, 1099 reps typically:

This flexibility is one of the main reasons experienced sales professionals choose the 1099 model.

The key difference between a 1099 sales rep and a W-2 employee is independence.

W-2 sales employees are hired by a company, paid a salary (often with commission), and managed directly. The company controls their territory, targets, working hours, and sales approach.

1099 sales reps, by contrast, are partners rather than employees. They are paid for outcomes, not activity, and are free to structure their work in a way that suits their business goals. This makes the relationship more commercial than hierarchical.

For companies, hiring 1099 sales reps offers a low-risk, scalable way to grow revenue. There are no salaries, benefits, or long onboarding processes to manage. Businesses only pay commission when sales are made.

This model is especially common in:

Because many 1099 reps already have industry relationships and established networks, companies can often access new customers faster than by building an internal sales team from scratch.

For sales professionals, becoming a 1099 rep offers autonomy, earning potential, and long-term flexibility. Instead of being tied to one employer, reps can build diversified income by representing multiple companies and selling complementary products or services.

Many 1099 sales reps are experienced sellers who have spent years as employees before deciding to work independently. At that point, they’re effectively running a sales business — providing sales as a service in exchange for a share of the revenue they generate.

Not necessarily. The 1099 model rewards self-motivation, consistency, and long-term thinking. Income can fluctuate, especially early on, and reps must be comfortable managing their own pipeline, finances, and workload.

However, for experienced sales professionals who value independence and control, being a 1099 sales representative can be one of the most sustainable and rewarding ways to build a sales career.

Platforms like CommissionCrowd exist to support this model by connecting companies with independent 1099 sales reps and helping both sides form clear, professional commission-based partnerships.