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Trump Card Could adopting a straight-commission system be a good bet for your business?

By Kimberly L. McCall

Opinions expressed by Entrepreneur contributors are their own.

Are you struggling to feed the ever-voracious payroll monstereach month while failing to achieve the sales results you need?You're not alone: According to Deloitte &Touche's "2003 Strategic Sales CompensationSurvey," 54 percent of sales leaders aren't satisfied withsales force performance. And 52 percent of respondents think thatwhen low performers aren't culled from the sales force, thelack of accomplishment acts as a "drag on aggregateproductivity."

If you wish to bolster sales without adding much overhead,commission-only sales reps may be a good option. In thestraight-commission model, your reps "eat what theykill," and you pay only for results. As with any compensationplan, it has both merits and snags. To gauge whether a strictpay-for-performance system will work for your sales shop, considerthe following issues:

  • Working withentrepreneurial reps:
  • You're a risk-taker, so why notengage reps with a healthy appetite for daring? According toMichael Herman, principal for Deloitte's Human Capital AdvisoryServices in New York City, "A commission-only plan willattract the most aggressive and self-confident sales personalitiesbecause they like the high potential earnings and relativeindependence." Expect to draw exceedingly talented sellerscapable of posting big numbers.

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