One of the most difficult aspects of being a commission only sales agent is dealing with the fact that you may not have as much incentive to sell as a regular employee. This can be especially true for new agents who are starting out. However, there are a few simple things you can do to help make your life as a commission only sales agent easier.
Pay per sale
When looking at how to pay comission only sales agents, you’ll want to consider the following factors: salary, commission, and bonuses. It’s important to calculate each rate separately. This will ensure you don’t miss out on a dime. Aside from the pay, you should also make sure you have a compensation plan that works for you. If you’re a small company with no incentives, you may not benefit from a high-paying commission scheme.
For some sales reps, the commission-only model will suffice. While it’s a good idea to give your reps a small percentage of their sales, it’s not likely to provide the same level of motivation to go the extra mile. There are some companies that delay payment until a customer pays the full balance.
On the other hand, many sellers would rather earn a base salary than a commission. These people aren’t necessarily looking to outsell other salespeople. In fact, most of them have years of experience selling in a particular Market.
Incentives for agents to retain customers
There are a few different types of incentives for commission only sales agents. These include absolute commission, relative commission, base salary plus commission, and straight line commission. Each of these incentives can help motivate your sales team and help them to achieve their goals. Before deciding on the right incentive, you should determine what your company’s goals are and how you want your sales to turn out.
Companies that want to give their sales agents a higher incentive for closing deals may opt for a gross margin commission structure. This type of commission pays your agents a percentage of the profit on your product. While this can be an effective incentive for your sales force, it may also limit your ability to offer discounts.
A base salary and bonus structure works well for many companies. It gives your agents a guaranteed salary and an incentive to close more deals. It helps you avoid the pitfalls of the commission-only model.
Jump ship when better off comes along
A jump ship is not a new concept. In fact, it has been around since the earliest ships plied the high seas. The phrase is most commonly used to mean leaving a job or other commitment. This is especially true as revenues have plummeted and cutbacks have been made. However, as a general rule, it’s not a good idea to take the leap without first doing your research.
It is not a simple matter of choosing between the pros and cons. What’s more, there are numerous schemes in place to discourage employees from jumping ship, and to reward those who stick it out. For instance, if a company offers a gold card for loyalty, that might be a better reason to stay put than to jump in the water.
While it is not uncommon for employees to jump from one job to another, a successful transition is usually made with a bit of caution and a little elbow grease. There are many reasons to stick it out, but the best way to make it through the door is to make sure you know exactly what is expected of you.
