How to Hire 100% Commission Only Sales Reps

Hiring 100% commission-only sales reps can be a strategic move for businesses looking to drive revenue without the upfront cost of traditional salaries. After all, when you hire commission-based representatives, they are bound to deliver or at least give their level best.

Hence, you won’t have to spend anything more on them than what those reps actually deserve.  

In the US, a sales rep, on average, earns $75,540 per year as a salary. On the lower end, this yearly salary amounts to a little over $34,000 on average. Commission-wise, sales reps usually get around 20-30%. This, of course, will vary; however, most sales reps get at least 10% commission. 

However, for sales reps who are only paid commission, their commission amounts or percentages will always be a bit higher.  Now, finding and securing top sales talent under this model requires a nuanced approach. Let’s see how such sales reps can be discovered and hired. 

What are the Pros and Cons of Hiring Commission-Only Sales Reps?

Commission-only sales roles offer a unique appeal to both businesses and sales professionals. For companies, this model eliminates the risk of paying salaries to underperforming sales reps. 

Instead, the focus shifts entirely to results, making it an efficient way to drive business growth. On the other hand, top sales talents are often drawn to commission-only roles because of the unlimited earning potential. If they’re confident in their abilities, they know they can exceed what they’d earn in a salaried position.

However, while this model can be highly effective, it also comes with significant risks. Sales executives who are new to the field, or those who aren’t as confident in their abilities, may shy away from these roles. As a result, businesses may struggle to attract a broad range of candidates, limiting their pool to only the most seasoned sales professionals. 

Moreover, turnover can be high if reps aren’t successful right away, leaving companies in a constant cycle of recruitment.

How Do You Identify the Right Candidates for the Position of a Commission-Only Sales Rep?

The US sees around 1.8 million openings in sales-related positions every year. Also, on average, 52% of college graduates in the US get a job in sales or office administration. Hence, there’s no doubt that there’s a candidate out there who can fit your company’s sales needs, that too on a 100% commission basis. 

That being said, the key to successfully hiring 100% commission-only sales reps is identifying the right candidates from the start. This means looking for individuals who have a proven track record in sales and possess the drive to thrive in a high-pressure environment.

When sourcing candidates, it’s essential to focus on those who are motivated by results rather than security. This is where top sales recruiters and sales recruitment firms can be invaluable. 

According to CulverCareers, these professionals have the expertise to identify candidates who have the potential to excel in commission-only roles. They can help filter out individuals who may not be suited for the demands of such a position.

How Do You Craft an Attractive Offer for a Sales Rep Who is Paid Only Commission?

Attracting top sales talent to a commission-only role requires more than just offering a high commission rate. The best sales professionals will look for additional factors that make the position appealing.

First, consider the product or service you’re asking them to sell. Is it something that has a proven track record in the market? Does it solve a real problem for customers?

Next, think about the support you’re offering. While you may not be providing a salary, you can still provide resources that will help your sales reps succeed. This might include training, marketing support, or access to leads. 

The more equipped your sales team is, the more likely they are to generate results, and, in turn, the more attractive the role becomes.

What Can You Do to Set Clear Expectations and Goals for Your Sales Reps?

Once you’ve found the right candidates, it’s crucial to set clear expectations from the start. Commission-only sales reps need to know exactly what is expected of them and how they will be compensated for their efforts.

Outline specific goals and benchmarks they need to hit, and provide regular feedback on their performance. Sales professionals thrive on knowing where they stand and how they can improve. Hence, make sure you have systems in place to track and communicate their progress.

Also, it’s essential to create a compensation plan that truly rewards performance. A tiered commission structure can be particularly effective, offering higher percentages as sales reps reach certain milestones. This incentivizes them to perform and also gives them a clear path to increasing their earnings over time.

Finding the Right Fit for Your Business

Hiring 100% sales reps who only get paid commission can be a powerful way to drive business growth, but it’s not without its challenges. 

Working with a sales recruitment firm can further streamline the process, helping you find the best talent for your specific needs. The success of your commission-only sales team will depend on finding individuals who are skilled in sales and aligned with your business goals.

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