In Part One we saw that one of the nicest aspects of commission sales is that it rewards for production and for adding value to the lives of others. As John David Mann and I site as the Law of Compensation in our book, The Go-Giver, “Your income is determined by how many people you serve, and how well you serve them.”
And, of course, this also benefits the company, which benefits when producers know they will make more money when they produce and less money when they don’t produce. And, this helps the company to stay in business, employ more people who can buy from other companies, helping those companies stay in business, etc., etc. (yes, “trickle down” actually does work despite how often some like to mock it — but remember, we’re talking “true” trickle-down, not politically-based favors to certain industries.)
So, yes, commission rewards for making sales.
“But Bob” the person asks, “doesn’t that motivate a salesperson to be dishonest; to say anything it takes to ‘make the sale’?”
We’ll look at that question in Part Three.
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I totally agree with commission sales- leaves more room for the possibility of meritocracy! Also creates incentive to serve the needs of individual clients.
Also just finished reading/studying The Go Giver Sells More- I love this book!! It rips apart the old “salesy” methods that don’t work and replaces “techniques” with solid guidelines to follow. This is a book of hope and inspiration & gets to the heart of “why” serving others adds value to all aspects of life! A must read that has the essence to tap into your innate worth!
How do you measure how well the sales person serves the client? Customer feedback. And the customer can always echo back what he or she has been told, or promised, by the sales person.
So a measurement tool is necessary and helpful for each sale with a new or repeat customer.
Where did that come from? #i’mbrilliant
Thank you for this post, Bob!
The last couple of post are great. Commissioned sales makes the sales person a partner with the business owner. And hopefully the sky is the limit for what the sales person can make.
For those who setting up commission pay plans, make sure to back load the pay plans, meaning make the percentage higher for repeat sales and referral sales. This will put a greater emphasis on providing better customer service, follow through and asking for referrals.
Keep up the great work, Bob!
Here’s to Your LifetoSuccess,
I echo John Clark’s comment about the value of a commission structure because it creates partnership. In my most successful roles I have felt like a part owner of the business – because I bore a large slice of the responsibility for its success. That’s heady stuff. Almost as valuable as the commission. Almost.
On the road to being Uncommon..