Having been in the sales line and with three different kind of pay packages, namely 100% commission, a low salary with the commission component and a 100% salary based, for the past three years, I can safely assure you that salary does have a certain place in a sales environment.

The sales environment is all about a Numbers game and a career with potential good earnings. Basically your earnings depend on the amount of commitment in your daily sales activities. But a sad truth is that the sales environment is one of those with a high turnover rate and the first group of people to be retrenched when the economy is bad.

What Is Wrong With The 100% Commission Environment?

This Reward Plan is definitely the best model for Sales Personnel who know this trade inside and out, they have their killer moves to seal the deal and their daily stable of referrals to follow up with. With this 100% commission environment, the earning is the sky is the limit.

The negative aspect is that there are bound to be some black sheep who are good in this line and only keen in selling high commission products or services. This, in turn, will not benefit clients who are in need of an actual solution (which may come with lower commission for the salesperson, think mis-selling!)

Another negative aspect is that for many of those who are just starting this line, the only time that they will get to see their commissions is when the client signs the dotted line, hand over the cash and over the money-back guarantee period. Meanwhile, they may have to depend on their savings and such to tide them over. Think about the expenses they may have to incur before being able to enjoy the fruits!

What About The Idea of 100% Salary In A Sales Environment?

The idea of having a 100% Salary is not one of those ideas that are welcomed by all sales personnel. In reality, the best sales personnel having a fixed salary is really short-changed in their rewards and for their efforts. The best reward model should be of Part Salary and Part Commission.

The 4.5 Benefits Of Having A Part Salary Part Commission In A Sales Environment

1. Salary, the fixed amount of money you will get every month, will help the sales person with their daily expenses - transportation, entertainment that’s commonly related to sales activities. The commission will serve as the reward for their persistence, their sales skills and patience.

2. Think about Needs-Based Selling. By getting part salary, these sales personnel do not have to worry about selling high commission items to ensure that they have enough money to last for the month. Instead think about the good karma they’ll be getting with needs-based selling. They are more than willing to serve any clients with any needs and provide a real solution.

3. The Business Cycle. Once a client is well-taken care of their needs because the Sales Personnel has done a good job, there is actually a business cycle that’s being formed. Happy clients will help to promote and share what they have gotten and many others will in turn be interested to know if they can get the similar deal. This is a good testimonial and good advertising for the sales company and sales personnel.

4. Think about the turnover rate. Most salesperson leave the job for greener pastures because they are facing a stagnant stage of their sales career (which is very common). You have to consider the accounts they leave behind and all these new clients have to build a new relationship with the new sales personnel, which is very time-taking.

4.5 Climbing Up The Sales Career Ladder. With the above benefits, most Sales Personnel will be more motivated to climb the Sales Career Ladder. These Sales Personnel will even be more confident to go for a 100% commission environment because they have the skills, referrals and accounts to work on.