Its not uncommon at this time of year considering the majority of businesses  face the consequences of sales people leaving and working directly with competitors due to higher salary packages presented and so on.

Ove the years I’ve come across a number of businesses employ “commission only” thinking this philosophy would work without the understanding that eventually their sales person would get head hunted by a competitor offering the entire package, not only is this taking place on a regular basis considering the nature and the role of sales person the level of resilience required lets face it we’re kinda living in the no and rejection business. In 2023 we’ve witnessed the increase in commission only offerings from start-ups and various smaller providers with the intent to offer portions of the overall revenue stream oppose to an OTE package.

The challenges and to why these hiring choices tend to backfire

• We’re in a growing competitive environment sales people on high salaries often get head hunted so why offer a commission only
• The lack of understanding: If we’re to take a closer look at the outbound and cold outreach, the time, energy, efforts and the opportunity costs behind the scenes backed by experience is what ultimately creates the outcome is where leaders need to invest first and foremost. Paid outcomes have an expiry!
• If we’re to place sales demeanour on a graph typically you’ll find some sales people hot and enthusiastic in the beginning sitting at the peak till deals fall quiet and undergo evaluations followed by the odd no or rejection where energy levels and performance declines showing troughs.

Point!

Well its a no brainer… lets begin building a sustainable sales system where sales staff and leaders are treated equally as colleagues should be where everybody gets paid properly, bonds are then developed in turn creating culture within the business with staff being incentivised and looked after. Given adequate training takes place we then engage staff into a routine, backed by a robust system with inbuilt sales processes to ensure capability and outcomes are achieved unlocking momentum and energy across a sales floor.

Now, as we tap into a new financial year dollars become scarce due to the lack of pipeline and revenue generated and this comes directly from the accountant or CFO, not surprised considering the increase in providers and sales quality shortages.