Sales Job Motivation

Sooner or later, we have to perform, to put business on the books. Until that happens, and the commissions roll in, we need some form of support to pay our pressing bills and to tide us over.

We need a “draw” against future commissions, somewhat like an advance on a future paycheck. Or, we might be allotted a steady salary, something unimpressive and certainly not lavish, but sufficient to put food on the table.

You should be warned that there are employers, and my sense is in a tough economy, increasing numbers of them that want people to work for free, literally. Or, as they might state it, they want to see results before they are obligated to pay for them.

So, they adopt a form of “straight commission” compensation. In essence, if you sell, and they pay you a commission, you’ll eat. If you don’t sell, you’ll starve.

Using a strict pay-for-performance model, a company could “hire” an army of servants, yet only have to feed, clothe, and reward the survivors.

On a conceptual level, I support merit pay, at least as a portion of overall compensation. But as a bill-paying person, I also realize that a situation has to be nearly ideal for 100% merit pay to be attractive.

Here are five tip-offs that certain straight commission “opportunities” are rip-offs:

(1)    It’s a new company, without funding.

(2)    The company is pioneering a new concept, hoping, trusting, and even shouting “There’s gold in them-there hills!” but they haven’t hit the Mother-lode yet.

(3)    No one has successfully done the job before; at least no one who is currently aboard or available to be interviewed, and management consists of rookies, not seasoned, knowledgeable leaders who have succeeded big-time, elsewhere.

(4)    The commissions offered are puny and unrealistic. Recently, I saw a plan that pays a mere 6% for one year for all revenue brought in. The firm offers a tech-based service that is practically, pure profit. In that circumstance, 20-30% commissions make more sense and will appeal to a professional caliber of seller.

(5)    There is no jackpot on the horizon to justify the salary sacrifices you’re being asked to make, today: No stock options, no profit sharing, and no equity of any kind.

Any one of these deficits could be a knockout blow to the opportunity being tendered.

But if ALL of them are in play, you should take your skills and energy elsewhere.

When I was 10, my first straight commission job was selling newspapers on a street corner. My curmudgeonly boss was paid 3.5 cents for each paper he sold, and in turn, he paid me 1.5 cents apiece. Everyone made money, and nobody was stiffed.

In grad school, I could afford to teach because I sold ballpoint pens over the phone, nationwide. I “bought” the pens from the house at 17 cents each, and sold them, one and two gross at a time, for 33 cents. Everyone made money, and nobody was stiffed.

Good commission jobs are out there, irrespective of your skill level or age. Don’t settle for what could be a scam or a losing proposition, where you’re being asked to shoulder too many of the business risks.

If you’re going to take on especially heavy duty responsibilities, you’re much better off building your own enterprise.

If you open your own shop, start off on the right foot by paying your people real money!