100% Commission Roles?
2 min read
6 months ago
Published on Apr 22, 2024
This response is partially generated with the help of AI. It may contain inaccuracies.
Table of Contents
How to Evaluate 100% Commission Roles for Sales Positions
Step 1: Understand the Business Perspective
- The speaker mentions that there are not many favorite things about 100% commission roles from a business standpoint.
- Consider the risks associated with such roles and how they can impact the company.
Step 2: Evaluate the Risk Factor
- 100% commission roles can put all the risk on the company itself.
- Think about whether this aligns with the company's goals and financial stability.
Step 3: Consider the Type of Person
- The speaker suggests that the type of person attracted to 100% commission roles may not be the ideal fit for early-stage sales positions.
- Evaluate whether the commission structure aligns with the qualities you seek in sales hires.
Step 4: Variable Compensation Plans
- The speaker mentions a suggestion to have variable compensation plans for engineers based on their performance.
- Think about how this concept could be applied to sales roles to balance risk and reward effectively.
Step 5: Reflect on the End Goal
- Consider the implications of tying compensation solely to specific metrics like lines of code written or deals closed.
- Evaluate whether this approach aligns with the company's values and long-term objectives.
Step 6: Seek a Balanced Approach
- Avoid extreme measures like 100% commission roles that may not be suitable for all types of sales hires.
- Aim for a balanced compensation structure that motivates sales teams while also mitigating risks for the company.
By following these steps, you can evaluate the suitability of 100% commission roles for sales positions within your organization and make informed decisions to support your business goals effectively.