Why Hire Commission Only Employees?
It’s logical to want to attract winners to your team, but how do you develop the most logical, least risky kind of compensation plan for your team?
Let me help you learn about commission only payout, meaning your teammates earn income only if they add revenue to your company’s bottom line.
As a business owner it’s always challenging to stress and worry about making payroll every two weeks, so one way to combat that is only to hire people on a pay-for-performance plan.
If you are in a service related business or in retail, this plan may be very difficult. However, if you own your own business as a one-person show…look and hire people who sell for you on a commission only basis, and in doing so, pay them through a commission plan.
Result of a commission only plan…
As a result of implementing this kind of pay plan, you don’t have to babysit your employees, track their hours, or worry about whether they are actually working or playing on company time.
Also by operating this way, you only attract the most determined, disciplined, and serious business partners to help you move forward. Currently, I have upwards of 60 joint venture (JV) affiliate business partners who market my products and services, and when they make or refer sales, they get paid.
This topic reminds me of the very first salesperson who came to me asking for an opportunity. Believe it or not, as a professional speaker, people ask to assist me in my business virtually every time I speak in front of a large audience.
I am a big advocate of focusing on marketing my business – not on advertising it. Therefore, whenever I am out and about and run across a community bulletin board where business cards are tacked up, I always leave one there. I rarely get any business that way, but I figure, what the heck, it is only a one penny business card.
An entrepreneurial spirit
One day about five years after I launched my business, I posted a business card on a community bulletin board at a grocery store in Poulsbo, Washington. To my surprise, about five days later, I received a phone call from a very nice woman named Mary West. She was so impressed with my card that she invited me to attend her weekly networking meeting. I politely declined since I travel too much to commit to a weekly meeting. I figured I would just send her a free book and that would be the end of her.
Well, she read my whole book in one day; then she went to my website and noticed that anyone could purchase 100 copies of my book at half price, turn around and sell them at full price, and keep the profit. She then called me up and asked me when she could come by and drop off a $700 check and pick up the books. Hmmm, I thought…perhaps I should reconsider joining her networking group.
To make a long story short, Mary has worked her way up in my organization and has booked tens of thousands of dollars in new business for me over the years, and I have promoted her to VP of Sales on a commission only plan.
As a result, she is free to work when she wants, as often as she wants, or a little as she wants. I recommend that you too offer the same kind of compensation plan and find very talented people like Mary West.
**This is an excerpt from my book: “The Affluent Entrepreneur”
As a Motivational Keynote Speaker, I can speak on this subject or adapt my subject to your audience.
Contact me the next time you need a speaker for your event.