Don't base commission on sales

Paying commission on total sales is the laziest design there is.

It's simple, easy to calculate and avoids arguments. The problem is that it rewards only the result and ignores the process completely.

1. Sales are built from many small actions

Behind a month's sales are lots of small actions: following up with customers, upgrading them to bigger packages, asking for referrals, and keeping customers coming back.

Do these well and sales come naturally, and keep coming.

2. Reward only the final number, and staff only do what's fastest

If you only look at total sales, staff only do whatever reaches that number fastest: pitch every customer, sell whatever they can, and move on.

Follow-ups take time and don't always bring sales right away. Keeping a customer takes months to show. None of it counts towards pay, so staff skip all of it.

You're buying this month, not next year.

3. Do this today: check whether your commission rewards behaviour

1. List them. Write down every commission and bonus item you pay today.
2. Split them in two. Which reward results (total sales, packages sold), and which reward behaviour (follow-ups done, retention rate of customers she served, new customers referred)?
3. Add one. If everything rewards results, add one behaviour reward first, such as follow-up list completion, or the retention rate of the customers she served.

You don't need to change everything at once. Start with one item so staff know what you're watching.

Conclusion: reward the actions you want to see

Staff work the way they're paid. Reward only sales and you'll get a team that sells well but can't keep customers.

CCS Plus records each staff member's sales, whether her follow-up list is ticked off, and the retention rate of the customers she served, so the data is there when you want to reward behaviour. Book a 30-minute Demo and we'll show you using your real data.