Sales By Commission As a Job Creation Tool?

[Elenny]

What is the general feeling about creating sales positions by commission only?

I have never liked the idea of hiring people to work by commission only without giving them a salary and benefits, but in the current economic climate, with the high unemployment rate everywhere, I would think some people would welcome a sales-by-commission-only job instead of being unemployed.

Or could I be wrong?

We need more salespeople, but we can't afford to establish salaried positions at this time. So is paying them on a commission-only basis a good idea, or would people still prefer to go jobless?

In my case the people I hire would be selling media advertising (radio, online, and print). Please advice.

[kayumochi]

I am in media sales and would not take a commission only job. You get what you pay for. You know that.

[Ralph]

It's great. This way people get paid for results, instead of selling their time. I'd surely rather go for such job than for normal salary. I can't see anything wrong with it and it definitely will work with such a high unemployment rate.

[kayumochi]

Originally Posted by Ralph

It's great. This way people get paid for results, instead of selling their time. I'd surely rather go for such job than for normal salary. I can't see anything wrong with it and it definitely will work with such a high unemployment rate.

Clearly you know nothing about media sales Ralph. Media sales professionals get paid for results regardless of the position or the organization. However, if an organization considers sales a profession and has respect for that profession it pays them a base salary as well as commission.

Elenny thinks she can take advantage of this downturn and take advantage of those in need of a job. All she will do is attract the desperate, the UNprofessional and her organization will pay the price.

[Elenny]

Originally Posted by kayumochi

Elenny thinks she can take advantage of this downturn and take advantage of those in need of a job. All she will do is attract the desperate, the UNprofessional and her organization will pay the price.

Kayumochi,

I respect your opinion, but you are wrong when you say that I think I can take advantage of this downturn and of people in need of a job.

I clearly stated that this is something I have never liked (as in I have never done it). If I wanted to take advantage of the economy and of people in need, I could have done it a long time ago, but I agree with you in that you get what you pay for.

I congratulate you for being so talented that you command a large base salary on top of your commissions. Let's hope that misfortune never catches up with you like it has caught up with many of your peers, who are the ones coming to me asking to work on commission (and I still haven't agreed to it).

Once again, thank you for your opinion, but with that chip on your shoulder, I'm not sure how you ever close a sale.

[kayumochi]

We all know misfortune in the world of media. None of us are immune, including myself. Some of us leave the business. Others struggle on. Still others move on and up in spite of circumstances. And it seems that there are those who are desperate and take a commission only media sales job. Problem with that is that desperation has a gamey flatulence that clients can detect like a shark can smell a molecule of blood in the ocean 2 miles away. What media product are my peers clamoring to sell on commission only? Rather than posting this question on this blog (and it is strange that I stopped by now because I rarely ever do) why not post it on a media-related Linkedin group? You may actually find some willing hands who are adept at this kind of work. In fact I have seen a question much like yours and it got an intelligent, thoughtful, mixed response.

[kayumochi]

Elenny, I didn't know until you mentioned it in another thread that your father's radio station was struggling after losing his selling partner. I thought you were a slimey hiring manager with no respect for salespeople. And yes, I do have a chip on my shoulder: I will never work for another organization that does not respect its workers.

My advice, instead of hiring commission-only sales people hire a radio consultant of some kind who knows the business inside and out and can sell himself (very important). Even if you only have the money to hire him or her for a week or a month he could at least set the direction your organization needs.

And do go on Linkedin and post questions in a media related group. PM me and i will give you the name of those groups.

[Elenny]

Thank you for realizing I am not a slimey!!

The radio station is doing much better since I posted that original message almost two years ago. We have even expanded the operation with two local websites (local news and web directory) and we revived a small weekly newspaper that my father ran for over 20 years and had shut down in 2006.

I will check out Linkedin. Thank you for your honest advice.

[kayumochi]

Originally Posted by Elenny

Thank you for realizing I am not a slimey!!

The radio station is doing much better since I posted that original message almost two years ago. We have even expanded the operation with two local websites (local news and web directory) and we revived a small weekly newspaper that my father ran for over 20 years and had shut down in 2006.

I will check out Linkedin. Thank you for your honest advice.

Don't keep me in suspense! How did you make a success of the radio station and more?

[jdhesse]

Originally Posted by kayumochi

I am in media sales and would not take a commission only job. You get what you pay for. You know that.

I disagree with this -- my experience is that you don't get what you pay for. I personally got my start in a commissioned base environment and think those who are adverse to this pay structure are usually under-performers anyway.

Go for it.

[Still Growing]

Commission sales people "aka Independent Sales Reps" are always either the the cream of the crop or the bottom of the barrel.

The very best sales people typically either start their own companies or become "guns for hire" selling on straight commission.

The very worst sales people typically loose their sales jobs and must take a commission only job because its the only one being offered.

I could write a book on finding, retaining and motivating commissioned only sales people and to give you all the information would take too long to post here. I have since moved to salaried employees with commission to keep their attention but also to keep them motivated.