Salespeople can be paid in a variety of ways. Some are on salary, while others are paid on commission. Then some are paid a base salary plus a commission. Our sales recruiters can tell you that how you pay a salesperson will dictate the type of professionals you can attract. Recruiting commission-only salespeople requires a different approach than traditional hiring. 

Commission-only salespeople are individuals whose entire income is based on the sales they generate. Unlike traditional employees who receive a base salary plus commissions, these sales professionals earn a percentage of the revenue they bring in.

There can also be pros and cons of having your sales team working on commission only. I’ll discuss all this below.

How do you recruit commission-only salespeople? 7 things to focus on

Recruiting sales professionals to work on a commission-only compensation plan requires you to adjust your hiring strategy. Here are some key strategies to find the best talent:

1. Be upfront about the commission structure: Don’t shy away from highlighting the commission-only aspect. Make it clear from the beginning or you could risk losing a candidate later on in the hiring process. Offer a clear commission structure. Outline your commission rates, quotas, and payment terms clearly.
2. Focus on earning potential: Showcase the high earning potential of successful salespeople. Sell them on the ability to make more money compared to if they were on a salaried role. 
3. Highlight freedom and flexibility: Commission-only roles often offer more autonomy, which can be attractive to some candidates. 
4. Work with recruiting agencies: Consider partnering with recruiting agencies specializing in sales or placing commission-only salespeople.
5. Look for candidates with a proven track record: Look for candidates with a history of success in sales, even if not strictly commission-based. Experienced salespeople are more likely to have success when the pressure is on to sell on commission. 
6. Look for self-motivated individuals: Commission-only roles require a high level of self-motivation and a strong work ethic. Look for candidates who need little direction and are independent. 
7. Provide ongoing support & training: Show candidates that even though they are on commission only, you invest in your salespeople by offering training programs and coaching to help them succeed.

By following these steps, you can attract qualified commission-only salespeople who are driven to succeed and help your business grow.

What industries typically hire commission-only salespeople?

While any sales role could theoretically be a commission-only position, there are some industries where it’s more common. Industries with commission-only sales roles include:

• Real estate
• Automotive sales
• Insurance
• Technology sales
• Telecommunications

What are the advantages of recruiting commission-only salespeople?

There are several advantages to recruiting commission-only salespeople for your business. Here are the top 5:

1. Performance-Based Pay: You only pay salespeople when they generate revenue. This can be a significant cost savings compared to salaried positions with guaranteed paychecks regardless of performance.
2. High Motivation: Commission-only salespeople are highly motivated to close deals because their income directly depends on their success. This can lead to a more aggressive sales force.
3. Scalability: Adding or reducing commission-only reps is easier than managing a fixed team size. You can quickly ramp up sales efforts during peak periods without the burden of additional salaries.
4. Focus on Results: Commission-only reps are typically more focused on achieving specific sales goals compared to salaried reps who might prioritize completing administrative tasks.
5. Potentially Lower Overhead Costs: Since commission-only reps are often classified as independent contractors, you may avoid employer-related costs like payroll taxes and benefits.

Commission-only salespeople can be a great option for businesses looking to boost sales and control costs. However, it’s crucial to weigh the advantages against the potential downsides to determine if this model aligns with your company’s needs and sales goals.

What are the disadvantages of recruiting commission-only salespeople?

With the good, can also come the bad. Commission-only pay structures do not come without potential issues. Here are the main issues that could arise with this compensation model:

1. Financial Instability for Reps: Commission-only income can be unpredictable, leading to financial insecurity for salespeople, especially during slow periods. This can impact morale and retention. Some top talent may be more interested in working in a role with a base salary.
2. There’s An Increased Focus on Short-Term Gains: To maximize commissions, reps might prioritize quick sales over building long-term customer relationships. This could hurt customer satisfaction and loyalty – potentially hurting repeat business in the future. 
3. There’s A Temptation To Consider Unethical Sales Practices: The pressure to make sales can tempt some reps to use unethical tactics, like misleading customers or pressuring them into unnecessary purchases. This can damage your company’s reputation.
4. High Turnover: The lack of a base salary and benefits can lead to higher turnover as reps seek out more stable employment options. This can disrupt your sales pipeline and require constant recruitment efforts.
5. A Less Experienced Talent Pool To Choose From: Offering only commission might limit your applicant pool to less experienced or desperate candidates, making it harder to find top talent.
6. Lead Generation Is Vital: If you don’t provide strong leads for commission-only reps, their success will depend heavily on their prospecting skills, which can be challenging for new hires.

A final word on recruiting commission-only sales professionals

While commission-only salespeople offer potential benefits like cost savings and high motivation, it’s important to weigh these against the drawbacks. This model might be suitable for companies with a well-established sales pipeline and products that are easy to sell quickly. For complex B2B sales or situations requiring long-term customer relationships, a hybrid compensation plan with a base salary and commission might be a better choice.

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