No More Commission Only Jobs!
I have a theory; no Inone wants commission only jobs.
In this day and age, if someone is going to work on commission only, they would start their own company, hold all of the equity, and keep all of the profits.
I’ve noticed that fewer and fewer job candidates (even recent college grads) are interested in working without a salary. Here are some of my theories as to why:
- The Economy – Yes, I said it. Even though the strongest small business entrepreneurs ignore the “Economy hoopla”, the reality is that the post-2008 business environment has made everyone a bit skiddish about taking risks. Yes, there are still people out there who have guts and will take a risk, but the majority of sales talent on the market are taking moves to protect themselves.
- Twenty-First Century Selling is Relationship Selling – Relationship selling takes time; time that I don’t have when I need to make a sale YESTERDAY in order to feed my family. For most industries, relationship selling is the right strategy. Our compensation plans should reflect how business is now being done.
- You’re Getting What You Paid For… Nothing for Nothing – If you want a commission only sales person, that’s cool. Just make sure your business model fits. You need a short sales cycle (single call to 1-month), a low value average price, and a low cost of engagement (the customer doesn’t have to change much in order to begin using your product). If your company, product, client, or sales cycle are the opposite of any of these, you’re probably going to have to cough up some cash and pay a salary, draw, or guarantee base.
Times have changed, and with it so have expectations about sales compensation.
What have you observed about sales compensation expectations when interviewing candidates?
Jamar Cobb-Dennard is a sales recruiting expert who helps companies find the right salesperson fast. To learn more, click here.