Sunday, April 25, 2010

Commissioned Sales Reps

The other night when I was driving home from work I heard a commercial for a local car dealership. They were bragging that their sales people were not on commission, thus there was no pressure for the consumer to buy. By saying this, they were insinuating that their sales people, and thus their dealership is better than the rest. I realize that car sales people get a bad rap, but lets face it, the fact that they are on commission or not has little bearing on the caliber of a sales rep.

Commissioned compensation means that salary is earned only when a sale is made. If this is the case, then all small business owners are effectively on commission. Since a business owner cannot make money with out making a sale, then their entire business is on commission. I resent the notion that commissioned sales people are pushy, demanding, and not professional. There is nothing wrong with being compensated based on performance. It provides a vehicle for businesses to reward employees based on success.

Professional, consultative sales reps are problem solvers, fact finders and the ultimate customer service rep. If you are on commission-like a business owner is- you are more likely to treat customers with respect, find their need and provide solutions that meet their requirements. The better you are at this, the higher your compensation can be if you are on commission. Why limit a sales rep with salary, when the more successful they are, the more profit a business can earn. They should be on commission to share in the success of the company.

Waiters and waitresses are effectively on commission. I enjoy a waiter/waitress that is responsive, friendly and helpful. They are not pushing me t buy something, they are being a good commissioned sales person.

Lets not equate poor sales skills with commission paid sales people. Business people that provide service beyond the norm and thus provide more revenue for their business should be compensated at a higher level.