The Challenges with Commission Programs

Commission only programs are distrusted, confusing, and transfers risk.  That is what I learned from the interactions with my highly regarded sales consultant, Michael D. Goodman, aka Solomon.  (If you missed the post exchanges, they can be found on SalesSquawk.com and SalesCooke.com.)

My original lament was that I do not believe that there are not enough open-minded, skilled, and hard working salespeople out there.  This was based on my experiences that few sales pros looking for work, not making any money, and living off savings were not receptive to a commission only, start-up sales opportunity.  Despite Michael’s arguments, he didn’t shift me much from my stance.  However, our exchanges did give me some things to consider.

Here is what I learned:

1. Trust: Many have been burned by the opportunity to make money in a commission only scenario only to have it fail miserably because of the program, the product, or management.  As a result, sales pros are gun shy when it comes to the next opportunity.
2. Risk: A commission only opportunity assigns all the risk onto the sales pro.  Actually, that can be a great thing; however, in this fear-based environment, there is little room for risk for even the best of opportunities.
3. Ignorance: As a result of experience and fear, potential and legitimate selling opportunities are being ignored.  This is on the sales professional.  If you are in a situation where you do not have a job, need an opportunity to make money, and have been given the chance to explore an opportunity–check it out completely! You can always say “no.”
4. Discovery: These sales professionals accept that what they know about the past is valid for the present.  You do not know what you do not know.  The source of my pure frustration with these commission based opportunities is that I was not given the opportunity to discuss the program, the potential, my commitment to their success, and their concerns.

Great salespeople know how to explore, learn, and create opportunity.  The above behaviors are indicative of people who stopped behaving like sales experts when presented with potential business opportunities.  There is real, legitimate, and advantageous opportunities out there.  It still involves risk, hard work, and a keen discretionary mind.  Explore every opportunity.  What’s the cost of saying “no” a few times until you find something that really resonates as great?   Frankly, you have nothing better to do until you find that opportunity.

Michael, your turn.  I am quite confident you will not let this go without some form of commentary.  Bring it on.

Dave Cooke is CEO of Strategic Resource Group, llc an organization specializing in helping businesses increase their revenues through effective growth initiatives and employee development programs. His contributions and insights can be found on his blog posts, SalesCooke and Sustainable Revenues.  He has also developed a new program for sustainable revenues in a down economy, known as SuRF.  To download this case study go to: SurfWhitePaper.com.