Commission-only sales plans are risky in my opinion.  I know they are the truest form of selling – you eat what you kill.  I simply think that many salespeople view this structure as a lack of commitment from the company.  I’m not saying that is accurate, but I have talked to many salespeople under these plans and this is their perception.

Fortune Small Business discusses this topic in their article Why to be wary of commission-only sales staff:

“If you hire someone and you’re not really willing to invest time and resources in them – and that’s really what a commission-only sales person suggests – then you’re missing an opportunity,” he says.

Good sales people communicate to prospects whatever makes your company special.

Again, the investment (or lack of) is the issue here.

“With the high churn rate of commission-only sales people, providing a position where there’s an equitable base and a reasonable expectation to succeed is probably less expensive in the long run,” she says.

Commission-only sales people who are just in it for the money “are the ones who will bail out first if hard times hit,” says Ross.

I’ve seen them leave before hard times hit.  The retention factor for these comp plans is minimal.  We have encountered sales comp plans that swung too far to the other extreme.  Those salary-intensive plans can create an entire set of problems themselves.  In the end, I am a proponent of a plan that blends salary with a commission.

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Especially when you can simply look at someone’s shoes.  This Yahoo News story has to be an April Fool’s joke:

Mindset Media, a media company that examines personality traits of different consumers, found that people who buy more than three pairs of sneakers a year are 61 percent more likely to have the qualities of a modern leader.

These qualities were defined as having ideas and vision, and a style with others that is both inclusive and decisive.

The survey of 7,500 people, using market research group Nielsen’s online panel, found multi-sneaker buyers were 50 percent more likely to be very assertive and 47 percent more likely to be spontaneous.

It gets worse better:

Hybrid car owners were found to be 78 percent more likely to be highly creative than other people and less dogmatic.

This has to be a prank.

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