Previously we covered frustration with sales compensation and the constant search for the perfect program.The last blog reviewed 100% base pay as an ineffective model to motivate sales professionals.
Now let's examine 100% commission, as the perceived end all for the "real" sales professional, basically this model is an urban myth!
The 100% commission model is most often used in B to B situations where sales cycles are short to mid - range. Additionally, we see this model in start ups or where existing business need many feet on the street, the product is not very complicated and they can't afford the highly skilled sales professional.
The problem with this model is the sales professional must get to know the product very fast and get on the street to make money. It frequently results in a very transactional and price focused approach to the sales process.
Additionally, the sales professional can become very self centered, create problems for internal support staff, as they ram through sales with little regard for the overall enterprise.
This "lone ranger" or "mercenary" mentality often sub-optimizes any semblance of " teamness" up and down the business. It can become the source reason for circumvention of standardized processes designed to effective run the organization.
The 100% commission model is frequently considered a red badge of courage and template for the real performers facts don't support this urban myth.
Next blog , the Hybrid that works most often.
Copyright © 2014 Dave Neal
Our Blogs are Authored by various members of the NEALABC team.