“Do you believe a company can put together a sales comp plan that is commission only, and still attract good talent? Let’s assume that the product that they would be selling is good, and that a market exists…”

This is a wise question, with the capacity to challenge the status quo – and don’t let us confuse the status quo with ‘best’ or ‘empirical truth’. Corporate systems are built for a particular hierarchical kind of control – which has its own value but also considerable drawbacks. I believe the model is overdue to evolve.

We are mistaken if we think we can treat all roles ‘equal’. May I compare the roles in the business life cycle (eg admin, sales, support, management) to children in a family? Whilst we have an overall outcome in mind, children respond in different ways to different treatment. In the same way, a successful business outcome depends on working to the different motivations of the various functions, towards a united purpose.

While a wise manager will make each function (eg administrative, sales, management) his “favourite child” (appreciating each one’s value), each type responds to a different fuel. The fuel I speak of is different shaped remuneration, incentive, forms of appreciation. N.B. “One size fits all” approach may appear sufficient because you’re getting some results, but try motivating a salesperson with the motivator for an administrator and watch the results nosedive!

I think the question and context of having a good product, a real market, a plan with aggressive earnings/sale, even some warm leads, is very positive. The spotlight is being put on productivity. The old factory-style model (clock on/off, fill your quota, fill in time) is long out of date. Today’s world requires every person to be accountable and productive to the purpose of their role.

I worked for almost 20 years on commission-only – good commissions including strong bonus system (from building a sustainable business) – raised my family on it – on a pioneer concept that turned a huge industry upside down. The Corporate model has a lot to learn from the Direct Sales industry. It was noticeable when reward structures (fuel) changed to stimulate different purposes, how the steam went out of it. I was one of the last prime movers and high flyers to leave, and the company remaining is a mere shadow of its potential in products. …So yes, you can attract great talent on commission only. One can be innovative to attract high flyers by a time-bound ‘wage’ to sustain them over the initial period, but I strongly believe in ‘growing your own’ stars! You get – no baggage, a pure heart of loyalty to the company, great attitude+learn=your own expert high flyers who carve a name for the company long term.

The risk takers are always due the highest rewards – but it must be regular and never defaulted on! The sales function responds best to a certain type of fuel.

May I suggest to anyone questioning this mindset, to read Dr Muhammad Yunus’ outstanding story, “Banker to the Poor”, which success he has also demonstrated in western culture….enjoy! Yes I believe it is time for some deep questions on transforming our current reward models. I believe we Humans were designed for productivity, achievement, creativity. Yes much of our collective genius has been ‘forgotten’ but we can awaken it. The right rewards/fuel does this. My take on this question is, “Are your reward structures really empowering your people to fulfil their potential (and therefore bank accounts)?”

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