Offering Commission to Sales Team

Big Mouth

I am considering offering a commission to my telesales guys (order takers really) to encourage them to get on the phone and sell.

Its not something we've done before however to start I'm offering them a chance to earn commission on one particurlar product we have coming in thats a simple sale and has no variations, one product, one price etc

Its not something we're likely to get too many repeats on but I'm hoping the lads will get on the phone to customers in our database who haven't dealt with us in a while

The "rules" of this will be that the rep only gets paid when the customer pays us (we're a wholesaler) my thinking is we should sell double the norm and get paid twice as quick.

The sales will know it won't become a regular thing but maybe might pop up every two to three months on simple sales lines like these where the margin allows us as most products would have to tight margin and there would be hassle with returns, credit notes, general confusion

My partner doesn't fancy the idea at all (hasn't said why) even though we both agree that none of the guys are chomping on the bit for sales , its probably too easy to hide behind admin work here and also they are happy to leave it to the credit controller to chase their debtors.

Anyone see a downside to this?

Peterdalkey

I am kinda with your partner on this one, but perhaps not for the same reason! If you do not currently incentivise/remunerate you sales team by way of commission, you are making a stick for your own back. If regular sales are not done this way, they will soon be seeking the more lucrative option for all sales. Not that this is bad but if they are order takers in normal operations, you do not want to go down this road.
I would Suggest you put up one or two fc*k off prizes... Tax free .. For the top sellers. It is a special, the terms are special and it does not weasel it's way in as a norm. It will create team competition, peer group cudos etc... If it does not work....easy to can!

Fries-With-That

Peterdalkey wrote: »

I am kinda with your partner on this one, but perhaps not for the same reason! If you do not currently incentivise/remunerate you sales team by way of commission, you are making a stick for your own back. If regular sales are not done this way, they will soon be seeking the more lucrative option for all sales. Not that this is bad but if they are order takers in normal operations, you do not want to go down this road.
I would Suggest you put up one or two fc*k off prizes... Tax free .. For the top sellers. It is a special, the terms are special and it does not weasel it's way in as a norm. It will create team competition, peer group cudos etc... If it does not work....easy to can!

I have to agree with this 100%. If you don't pay commission at present, you're creating a whole load of heartache for yourself in the future if you start now.

Do a weekly daily leader board, the top salesperson will push themselves harder to be on top and their peers will push themselves to attain bragging rights.

NR04

I don't understand why it would be a bad idea?

Bandara

If you do a weekly score board then once a guy realises he's not going to win a prize because Johnny got a big order, then he's not going to try a leg.

I can't see any downsides to your idea. They are salespeople. They are paid to sell.