Comments on: Hiring Commissioned Salespeople? Don't Use a Standard Selection Process

By: SebC

SebC — Thu, 16 Jun 2011 20:08:21 +0000

Thanks for this and all the comments. I have a commission sales interview tomorrow. It will be very interesting.

By: Article – New approach to hiring well in Sales @ Insights from Insight

Article – New approach to hiring well in Sales @ Insights from Insight — Mon, 18 Jan 2010 15:33:16 +0000

[...] http://rehaul.com/hiring-commissioned-salespeople-dont-use-a-standard-selection-process/ By Lance Haun Rehaul.com December 30, 2009 [...]

By: Steven Rothberg CollegeRecruiter.com

Steven Rothberg CollegeRecruiter.com — Mon, 11 Jan 2010 22:26:43 +0000

I love the idea of thinking of a potential commission-based sales person as a partner. Too often we’re by so-called experts to look for people who have the most experience in the role for which we’re hiring, but the problem with that approach is that it is very likely that great sales people who have done what we want them to do for us likely are still employed. Granted that recessions like this have a way of making great people unemployed but great sales people don’t stay unemployed for long. Some of the best sales people that we’ve had did work which was similar to what we want them to do for us but not the same work. Their skills were transferable, not identical.

By: Lance Haun

Lance Haun — Thu, 07 Jan 2010 06:42:58 +0000

Good comments everyone.

As far as the confidentiality thing, I understand that. We either balanced the company specific information with industry figures to generalize the information or we made them sign NDA’s. That may seem sort of extreme but a high potential person could pull in half a million dollars of business. You’d do that with any vendor you were working with that closely.

By: David Biggs

David Biggs — Tue, 05 Jan 2010 14:29:14 +0000

Lance, your observations are astute as you admittedly have scant experience with the challenge. I could write a book on this topic and probably should, but am having too much fun and success with my work as it is structured.

A couple of keys to success with commissioned sales people, 1. Yes, partnering model works….top down authoritarian does not….the successful personalty won’t be receptive to a “boss”, and the significant other of the salesperson is the real manager anyway….bring that person into the initial interview if possible…you are really partnering with the household UNIT. If not, as the money does not show up right away…you, the salesperson and the opportunity will be undermined…as with most entrepreneurial endeavors, at the start,if one divides the number of hours into the money earned it looks grim….and even if the salesperson isn’t doing that…you can be sure someone in his/her life will. You need a RELATIONSHIP with THEM so that each week you can teach a bit more to allow the salesperson to earn a bit more…and have him/her on the team long enough to realize the success you know is there.

2. Put, in writing, what you will do, including comprehensive training (which most people don’t get in a commissioned sales job) and likewise, in writing, what the salesperson will do…your expectations of the role…be detailed. Get agreement from the salesperson. And, keep track of how you both meet the agreement…..if you don’t have someone who will be cooperative and committed enough to make something of the opportunity, you will know very soon and save yourself time and other resources.

By: Robert

Robert — Tue, 05 Jan 2010 01:31:46 +0000

Lance: While I composed several responses to your dilemma I think there is one major issue you need to address asap. You are now opening up to your potential employees ( whether they are commissioned or salaried ) and you’re thinking is that they’ll just forget everything you say if they don’t get hired. Giving out your business practices like candy at Halloween will cost you far more than worrying which assessment will provide you with a worthy candidate. Believe me it is, A BIGGIE!”
PS: After being in the selling profession for 40 years the debate over comm.vs. salaried has been discussed over and over again and there is not a one size fits all answer. Find what works for you – look at some of the hiring practices of the major companies for advice and examples. In a more modern phrase – Delete the Risk Button and Install the ” Shared Investment Slogan” it sounds much better than risk .

By: Jeff

Jeff — Mon, 04 Jan 2010 20:44:19 +0000

Great poster and comments! Can anybody here tell me what kind commission fee is good enough to motivate commissioned salespeople to work hard? Any rules here to follow? Your comments and suggestions are appreciated sincerely!

By: Dawn Hrdlica

Dawn Hrdlica — Mon, 04 Jan 2010 19:48:15 +0000

My company, a direct mail advertising company, employees 60+ commission sales reps over 27 states. Of our total 340 FT and 500 PT positions, they have been the hardest positions to fill for the last 8 years I have worked here.

We do know that our learning curve is long—so for the first 12-18 months our new hires are compensated with a salary + bonus structure. After te 12-18 month period is up, they are weaned off the salary and switch to a straight commission vs draw.

I have looked at the fill process everywhich way but loose and I must say I’m intrigued by the position Lance presents. Now, since our reps do not take on the most risk during that first year (the company does since we are paying them a salary), I still believe I’ll hold on to my behavior based process.

However. . . .

I’ll likely experiment with switching out of “finding out about them” earlier and switching into “let me tell you more about our company” sooner.

Please keep up these conversations guys——these are elusive fills. . . . I love to hear and and all ideas and practices!

By: Mark Birch

Mark Birch — Mon, 04 Jan 2010 19:46:21 +0000

These are very difficult positions to identify the right talent for. However, it is no more or less difficult than other high risk, high reward positions. The key challenge is to understand what specific set of skills would be required to be successful. Once you have defined that, then you can set your sights on going where those types of people with those skill sets would be.

For example, I have found some success with targeting candidates out of real estate for technology sales roles. It worked because many of the skills of a good realtor are a close match to selling in the early stage / start-up technology market.

The other points about establishing a partnering model are good. The mistake most companies make is hiring commissioned agents is that the incentives do not match the risk that a sales person takes on. That needs to be calibrated correctly otherwise you are going to have high turnover.

Lastly, most start-up firms think hiring commission sales people as a good idea to defray cash outflows. It is a bad idea however as I truly believe it is encumbent on the founders to actively sell. Most start-ups are not mature enough to handle the management overhead and educational needs to make such an arrangement successful.

By: Leanne Hoagland-Smith

Leanne Hoagland-Smith — Mon, 04 Jan 2010 19:46:20 +0000

If you change how you look at things, the things you look at will change. Sometimes a different perspective is all that is needed. Additionally, possibly helping the salespersons to have greater clarity around their talents specific to their sales positions might also help especially for commissioned based sales pros. Most folks including salespersons do not know their key attributes or talents. For my 2 cents, I believe those who are hungry will hunt and sales folks who are on salary only have a tendency to become lazy especially when quotas remain the same or are marginally increased.