Are you looking to hire commission-only sales representatives? In today’s business landscape, hiring commission-only reps is a great way to drive sales growth while reducing costs. But how should you go about the hiring process? Rest assured we have you covered. This guide will explore the hiring process, the benefits and challenges you might face, how to retain top-quality reps and more.
What is a Commission-Only Sales Model?
Let’s start by breaking down exactly what a commission-only sales model means. Anyone hired on a commission-only basis will not receive a base pay or regular salary; any payment is solely based on performance. The most common model will pay representatives a percentage based on the sales that they close and the revenue that they generate for your business.
Benefits and Challenges of Hiring Commission-Only Reps
You are likely thinking that hiring commission-only sales representatives is a great business choice and driver of growth for your company. And it absolutely can be. But it does also come with some challenges.
Benefits
- Motivation
When your sales reps are commission-only, they are highly motivated to generate revenue and close deals. This motivation will drive sales growth faster than a salaried workforce, as their earnings are tied to their performance. Your workforce will be driven to produce better and better results to maximise their income.
- Cost-effectiveness
It goes without saying that when you pay your sales reps based on performance, you are choosing a cost-effective method. Your business is guaranteed to see sales before you depart with any money. And you won’t be hit with any upfront costs associated with salaries and other company benefits, allowing you to invest money into other areas of your business.
- Reduced risk
When you are hiring commission-only sales reps, you are eliminating the risk that comes alongside hiring full-time employees. If you are just starting up or looking for a low-risk growth model, this is the route to take.
Challenges
- High turnover
Naturally, the lack of a base pay and regular income can result in a high turnover of staff and a bigger demand on your recruitment efforts. Ensuring your reps have the product knowledge to thrive is essential, and a higher turnover means that the demand for training will be higher.
- Lack of talent
Finding high-quality sales reps who are experienced within your field can bring challenges because you may be limited in the amount of talent available.
Why Top Performing Sales Reps Choose Commission-Only Sales Jobs
Despite the lack of certainty over income, a commission-only sales model is popular among top-performing reps. The unlimited earning potential and merit-based success model allow them to thrive and be well rewarded for their effort. They have greater flexibility over their work and can turn it up if they wish for a higher income in a certain month.
How to Qualify and Interview Commission-Only Sales Representatives
Qualifying and interviewing commission-only sales representatives can be very similar to non-commission sales roles. You should look for a track history in a commission-only role, perform a personality assessment to look for traits that mirror your company values, test their selling skills through some role-playing scenarios and discuss their expectations for their earnings.
Where to Find Commission-Only Sales Representatives
If you have placed job adverts with little return, seeking the help of a recruitment firm can be a great way to streamline the process. They’ll have access to a high volume of potential candidates and can screen those who would be a good fit for your business.
How to Retain Commission-Only Sales Reps
Retaining good commission-only reps doesn’t have to be hard. If your product and commission policy is good, then top-quality sales reps will be driven to stay. Set your team up for success with quality training and access to resources, and retention rates will follow.
How We (HyperHired) Recruit and Attract the Best Commission-Only Salespeople
Here at HyperHired, we take care of your commission-only sales recruiting needs for you. We generate a high volume of candidates and provide a screening service to ensure that they are a good fit for your company before scheduling an interview with your business. We save you time and resources, providing you with the best commission-only salespeople for your role. The key to successful recruitment is finding salespeople who have experience in your field, share your values and have a drive for results.
Find out more about how HyperHired can help your business by completing our online enquiry form today.
