Straight Commission Sales Team

A straight commission sales team is a sales force that is compensated entirely based on the sales they generate. They do not receive a base salary.

The Benefits

• Affordable for Any Business: This model makes it possible for any business, even a one-person operation, to afford a sales team. You only pay for results.
• Attracts Top Talent: A well-structured commission plan with high earning potential can attract highly motivated and confident salespeople (see Performance-Based Compensation).
• Scalable: It is a highly scalable model. You can grow your sales team without increasing your fixed costs.
• Weeds Out Underperformers: Underperformers will not be able to survive in a straight commission environment, so the team will naturally consist of high-performers.

Key Considerations

• High Earning Potential: The commission structure must be generous enough to provide a significant income for top performers.
• Strong Support System: To be successful, a commission-only sales team needs a strong support system, including leads, training, and marketing materials.
• Long Sales Cycles: This model can be challenging in industries with very long sales cycles, as it can take a long time for new salespeople to start earning an income.

For many businesses, a straight commission sales team can be a powerful engine for growth.