Having a commission-only sales person means that they only get paid when a deal closes. Their paycheck is not guaranteed each week like a salary or hourly employee. In order for them to make money, they need to bring in new business. This can be a great model for your agency because it ensures that your sales person is motivated to close deals for you regularly.
This type of system usually works best when the sales person has a good understanding of what they are selling, what their clients’ pain points are, and is comfortable working on commission.
There is a wrong and right way to treat your contractors. You will need to keep your pipeline full for them to have conversations, otherwise they have nothing to sell. If your Agency has a slow sales month, your commission-only sales person may not make any money. This can be a problem if they are not prepared financially for slow periods.
Overall, commission-only sales people can be a great asset to your Agency, as long as you have a good training and onboarding process in place.
The other important part is that they have enough leads. If they’re working day in and day out and not getting any bites, that’s going to get old really quick.
- Do they have leads in their pipeline?
- Do they have a process for working those leads?
- Are they tracking their progress?
If you answered yes to all three, then you’re on the right track. If not, you may want to consider making some changes.
It will help your agency in the long run to have experience working with commission-only sales people. But, if you don’t have a good process in place, it can be difficult to manage. If you’re thinking about working with commission-only sales people, make sure you have a plan in place first.
At the Done For You Agency we help with all of this to get your agency taking off and thriving.
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