Commission based sales aren't the answer.

[AllUpHere]

If you are considering trying to find commission based (or worse still, commission only) sales staff, take a step back and have a think because chances are:

Your marketing strategy is rubbish

Or

Your business plan is fundamentally flawed

Or

Both of the above.

Commission based sales models are not suitable for the vast majority of businesses, and will simply give you a disadvantage.

 

[Psl]

If you are considering trying to find commission based (or worse still, commission only) sales staff, take a step back and have a think because chances are:

Your marketing strategy is rubbish

Or

Your business plan is fundamentally flawed

Or

Both of the above.

Commission based sales models are not suitable for the vast majority of businesses, and will simply give you a disadvantage.

I am intrigued!

Please list the vast majority of businesses that are not suitable for the commissioned based, or indeed, commision only, sales people, model.

 

[NickGrogan]

Marketer attempts clickbait marketing - will it work?

 

[Biz Dev Agency]

Whilst there should be commission incentives for any sales role, I agree that commission only is usually a red flag to an underfunded company and could highlight that they are also skimping on the supporting services a salesperson will need to be successful, such as marketing and lead gen. Are they also skimping on product or customer service ??

 

[AllUpHere]

I am intrigued!

Please list the vast majority of businesses that are not suitable for the commissioned based, or indeed, commision only, sales people, model.

You only need to have a look around the forum for examples. It's very common for people to be asking about how to use commission only sales to grow their business, but I don't remember ever seeing the question from a business for whom it would be a good idea.

As examples, In the last couple of days I've seen the question from a web designer, a software developer, and a guy who connects music teachers with students. None of these people should even be thinking about commission based sales.

 

[AllUpHere]

Whilst there should be commission incentives for any sales role, I agree that commission only is usually a red flag to an underfunded company and could highlight that they are also skimping on the supporting services a salesperson will need to be successful, such as marketing and lead gen. Are they also skimping on product or customer service ??

You are quite right about the red flag. Almost every business we read about on here looking to pay commission only is either under funded or is trying to sell an unproven or poorly developed product or service with no risk to themselves.

 

[OldWelshGuy]

Not always, I have used a combination of both, and the reality is the best salespeople won't work for anything OTHER than straight commission, why would they? Why would they want to subsidise the poor salespeople?

if the product is right and the support is right, then commission only is a perfect system.

 

[AllUpHere]

Not always, I have used a combination of both, and the reality is the best salespeople won't work for anything OTHER than straight commission, why would they? Why would they want to subsidise the poor salespeople?

if the product is right and the support is right, then commission only is a perfect system.

I quite agree. However, in the context of this forum can you think of anyone who has ever asked about commission only sales who would have decent sales staff clambering over each other wanting to sell their product or service?

 

[Psl]

You only need to have a look around the forum for examples. It's very common for people to be asking about how to use commission only sales to grow their business, but I don't remember ever seeing the question from a business for whom it would be a good idea.

As examples, In the last couple of days I've seen the question from a web designer, a software developer, and a guy who connects music teachers with students. None of these people should even be thinking about commission based sales.

Thanks, but I asked you to list the 'vast majority of businesses', as you quoted in your OP.

I am intrigued to see from what sectors the 'vast majority of businesses', on your list, would be from?

The three businesses/sectors you mention aren't the 'vast majority of businesses'!

After all, you have made the statement and the list should be compiled, as surely you would be targeting them to advise them of either; A) Their marketing strategy is rubbish, or B) Their business plan is fundamentally flawed, or C) Both A+B

 

[NickGrogan]

Almost every business we read about on here looking to pay commission only is either under funded or is trying to sell an unproven or poorly developed product or service with no risk to themselves.

Almost every new business we read about on here is either under funded or is trying to sell an unproven or poorly developed product or service.

 

[AllUpHere]

Thanks, but I asked you to list the 'vast majority of businesses', as you quoted in your OP.

I am intrigued to see from what sectors the 'vast majority of businesses', on your list, would be from?

The three businesses/sectors you mention aren't the 'vast majority of businesses'!

After all, you have made the statement and the list should be compiled, as surely you would be targeting them to advise them of either; A) Their marketing strategy is rubbish, or B) Their business plan is fundamentally flawed, or C) Both A+B

Again, the 'vast majority' is also within the context of this forum.

No, I have no such list as I'm not 'targeting' anyone. The thread was supposed to be useful / thought provoking for those thinking that commission based sales would be a good model to use.

 

[AllUpHere]

Almost every new business we read about on here is either under funded or is trying to sell an unproven or poorly developed product or service.

I can't argue with that.

 

[Psl]

Again, the 'vast majority' is also within the context of this forum.

No, I have no such list as I'm not 'targeting' anyone. The thread was supposed to be useful / thought provoking for those thinking that commission based sales would be a good model to use.

Ahhh, I see - 'in the context of this forum' - based on your OP I thought you were meaning the 'vast majority of businesses'

 

[AllUpHere]

Ahhh, I see - 'in the context of this forum' - based on your OP I thought you were meaning the 'vast majority of businesses'

There's your mistake. I take your point though, I should have been more clear.

 

[Deleted member 59730]

Rubbish.

I have had commission only sales people on and off since the sixties. It works for individuals and it works for big companies.

A web designer is an ideal choice. A commission only rep could handle 2 designers working in complementary fields, A couple of photographers likewise, A copyrighter and a print specialist. If the rep took 20% she would be doing very well.

 

[AllUpHere]

Rubbish.

I have had commission only sales people on and off since the sixties. It works for individuals and it works for big companies.

A web designer is an ideal choice. A commission only rep could handle 2 designers working in complementary fields, A couple of photographers likewise, A copyrighter and a print specialist. If the rep took 20% she would be doing very well.

I'm not saying the rep wouldn't do ok out of it. It's not the best method from the designers perspective though is it. They are needlessly giving away 20 % of their turnover.

 

[Deleted member 59730]

I'm not saying the rep wouldn't do ok out of it. It's not the best method from the designers perspective though is it. They are needlessly giving away 20 % of their turnover.

Instead they could spend 50% of their time selling themselves.

I've paid everything from 15% to 25% and it has always been worth it.

 

[AllUpHere]

Instead they could spend 50% of their time selling themselves.

I've paid everything from 15% to 25% and it has always been worth it.

I think you are massively over estimating the amount of time it takes to market the kind of businesses suggested. If a self employed web designer or photographer is spending more than a couple of hours per week on marketing they are doing it wrong.