Commission Only – It may seem like a cost effective way of increasing your sales team but
very rarely does it work out that way. It can work in some industries, and is normally
only when the salesperson can be compensated quickly upon making a sale,
however it is not the case with the longer and more common sales cycles, complex
sales where it takes time to build your pipeline and win the bigger deals.
Going down the “Commission Only” route costs you time and that time is going to
cost you money.
Low Basic, High OTE – It can be tempting for companies to go with the low basic, high
commission strategy. This strategy will almost certainly cost you more. Getting
the remuneration plans right is not simply paying the lowest basic you can get
away with paying, if this prevents you from hiring the best talent you need to
compete and win, it’s an expensive sales force. You can put in a lot of effort,
time and money without producing results.
A top salesperson will not
want to work for either of the above, they want the security of a good basic
package whilst having an uncapped commission scheme to really motivate them and
drive them towards the bigger deals. This doesn't mean you should pay any price
for the talent you need, getting the right talent requires the right
recruitment process. You can’t build a professional sales force without making
the necessary investment. The cheaper you are investing in your Sales force, the
worse your sales will be.
Get your recruitment right
first time, choose your recruitment partner carefully and it will save you time
and money.
Written by Liam Oakes
Liam is the Office Manager at
Aaron Wallis and has been with the company for 3 years after having a career
with the RAF; Liam has helped hundreds of Sales Professionals secure a new
Sales role and ensures that Aaron Wallis runs smoothly.
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