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Commissions in Crisis?

September 23, 2014 11 Comments

Are your commissions in crisis? Are you concerned even a little bit about shrinking margins, competition and technology that could result in lower commission or sales people being eliminated from commissions? If you said no, think again. There are a lot of things going on that are impacting your commissions. I recently met with three different businesses and the discussion focused on commissions, pay plans and profits. The idea of sales commissions going away is in almost every vertical that exists.  It happened at the big box retailers and now is being investigated in automotive, real estate, insurance industries and more. In a recent Edmunds article Matt Jones talked about the “growing number of car dealerships moving away form paying their sales people profit-based commission.” A recent article at Inc. magazine said, “Changes are happening that make a commission-free world more likely. One is that salespeople who stay at their desks all day are replacing field sales. The number of people selling from their desk has grown almost 300% versus sales people in the field.” Like it or not the environment is changing. Whether you agree with these changes or not I can assure you of one thing – if you aren’t great at sales, your commissions are going away. They already have gone away.  If you aren’t willing to do  Whatever It Takes on every deal, you will not get a commission. No offense if you are in sales but it’s hard to find great salespeople anymore. Where are they hiding?   Look at the influence of Amazon, True Car, Zillow and the likes of companies offering fast flow of data to consumers altering the influence of the salesperson’s input. It doesn’t mean the sales person is not necessary; it means the salesperson that isn’t willing to go above and beyond and do  Whatever It Takes  will lose out. Then, you have companies like Best Buy and Sears paying salaries instead of commissions where everyone suffers from consumers, brands, employees, even investors. So you know where I stand. I love commissions. I don’t think anyone can even take away a commission. It’s the free market. A  Whatever It Takes attitude will be rewarded by the market, or they will migrate to those opportunities. If the car dealer doesn’t pay a commission, talent will then move to real estate or Wall Street. I know I would. The only way to protect yourself against those who may want to eliminate commissions is to do  Whatever It Takes . No matter what, you must remember that:
  1.   Everything in life is a commission. Anything above poverty level, $23,000 a year for family of four is commission.
  2. Your pay will go down if you don’t get better. You must fill your mind with information that helps you improve the way you think and sell. Invest in yourself!
  3. You better be fast. The faster you go the more valuable you are to the customer and the more you can get done. Be fast, not sloppy.
  4. You better follow up. Persist when others give up after two attempts. Follow up and get creative about it and do  Whatever It Takes to get your commission.
  5. You better be the best. Average doesn’t cut it. I t doesn’t pay.  If you aren’t going to be the best, you will pay the price.
  Whatever It Takes is the theme you must adapt to regardless of your position in life. It’s time to take no prisoners, and literally be willing and pushed to do Whatever It Takes. If you go home unable to say, “I did whatever it takes today,” then know you are at risk. I am so certain of this that I created  Whatever It Takes Network for those of you that have that  Whatever It Takes mentality and want to reinforce it everyday. We provide mentors, leaders, examples and success stories of people who have been average, or even way below it, yet managed to create greatness for themselves and their families. If you haven’t subscribed to the network yet, do so. Be great. Nothing else pays. -GC

11 Responses

Ian Caldwell
Ian Caldwell

November 01, 2016

Grant and PTSD wtf no commission when the retail is up then it would help if I started my drip and quit dealing

MotorBikeTV
MotorBikeTV

November 01, 2016

Crikey – I’m just about to look at hiring field sales on commission only in England, But was thinking about telesales being the way forward cutting down massively on expenses of running a field sales person – so can you actually achieve the same or more as telesales in place of field sales ?

Edward R. Elkins Jr
Edward R. Elkins Jr

November 01, 2016

I just finished 3 years of school and I am working on getting capital to start a business or businesses of my own now, I get bombarded by family members and associations who tell me get a real job, when I am talking about commission based jobs or on a job search for sales jobs, I was trying to get started with a virtual office commercial debt recovery position 30 percent commission based independent contractor position with an LLC. I worked 4 months on it and didn’t get paid because the sales management was not really working or producing themselves and It was hard to get the coaching I needed to get paid right away. I just landed a position with Symmetry Financial with 60 to 80 percent commission based pay no cold calling, selling life insurance and mortgage insurance. If this works out for me I can get my mind off the middle class B.S. . I have worked years on business ideas that became an obsession for me, If I can’t raise capital because I have to conform to a salary for 25 to 50,000 a year my dreams are shot and 15 years of planning and brainstorming endless hours of research and all the time in learning , schooling, ect., will be completely wasted. I can sell dogs and cats for 50,000 a year just owning a few exotic dogs or cats, birds, ect . can grow plants or vegetables and earn that much just from a backyard operation. A person can shovel manure from horse owners and cow owners properties for free and sell it for a dollar a pound in spring and summer as fertilizer. 8 dollars a gallon for compost tea, a small food booth at a fair pays atleast 20,000 in a fair season but can pay more I would say 20,000 would be about 5 small fairs with a decent well thought out menu. One of those basketball games at carnivals earns 5000 dollars a day at a small fair in a mall parking lot, lots more at a state or county fair. just an example of how we shouldn’t let this socialist stuff get us locked into some position for 25,000

Grant Cardone
Grant Cardone

November 01, 2016

You got it!

Gavin Rudd
Gavin Rudd

November 01, 2016

I agree Chuck! Good stuff

Vasili
Vasili

November 01, 2016

If the product that you sell does not require negotiation it might be the way to go. Its definitely the way to go if you are selling a product that has no emotional attraction to it E.G Internet Plans / Mobile phone Plan – & May be you do not even need tele-sales – Just a 24/7 live chat might do the job for you.But if you sell a Motorbikes or cars …I am not sure how you will get tele-sales to work for you.This Said Its crucial that your sales team has amazing telephone skills.Even your Field Sales rep.

Chuck
Chuck

November 01, 2016

In the past few months I’ve talked with numerous people in the bizopp space, such as internet marketers, network marketers (mlm) and affiliates. Nobody ever tried to CLOSE me. Not a one. They all SUCKED EGGS. It was a valuable lesson, in that if you learn to CLOSE, the world is your oyster.

Edward R. Elkins Jr
Edward R. Elkins Jr

November 01, 2016

As you should know Hippies were the start of the sissie era, Head bangers and hollywood sissies inspire our culture, people’s mindset’s are influenced by the sissy culture of hippies and hollywood, Joe Biden has a pony tail don’t he

Edward R. Elkins Jr
Edward R. Elkins Jr

November 01, 2016

I have talked to hippies who were actively involved with the draft dodging and living on communes back the hippie era. Each I spoke to were cut out of their parents wills , in fact i am certain many with christian or catholic parents were cut off from inheritances. Our whole economy really could be what baby boomers who won’t give up have thought out, George Bush was a baby boomer, Hillary is a baby boomer, Bill Clinton is a baby boomer, Carter , all these baby boomers are who do it, Joe Biden, all the owners of large corporations like Bill Gates, Buffet, Trump, all baby boomers, I know the baby boomers in my family freaked everything out, none of them are leaving behind inheritance or leaving behind anything for their children none of them host christmas’s and holidays like my grandparents did who were world war generation, these baby boomers are just a freak happening I hope, I don’t know what my generation is going to be like dysfunctional maybe but I hope not socialist or communist like the hippies, we need to take on the culture , anarchy from rock and roll in the 80 ‘s and 90’s had a reverse effect, the culture is weakening america, we need to advance past socialism and anarchy , and get back on a successful path after these hippies destroyed all they could.

Edward R. Elkins Jr
Edward R. Elkins Jr

November 01, 2016

I talked to a guy who owned 9 small little booths selling novelty little balloons and toy items at the fair, he told me one little booth he earns 15,000 from just doing small fairs, he paid his employees 20 percent commission and they were earning around 1000 a week just standing there holding balloons ect, but he told me when he was younger he got a chance to open a food court booth with a seafood menu at the Pullayup state fair in Washington and in 18 days he earned 60,000 from one food booth . it was an 8 year waiting list to get a spot there and he lost it because of problems with the main carnival owner he was in disagreement with. However that is just another example of how commission sales are important to business. We can’t let government control our earnings, that is communismour enemy. Hippies have worked years on over throwing our nation, they use the community colleges and universities as much as they can and weaseled their way into the political corners , When baby boomers are completely done away with I think things will turn around.

Edward R. Elkins Jr
Edward R. Elkins Jr

November 01, 2016

The carnivals each year are a good example of how commission sales have changed into minimum wage jobs, the carny’s used to earn a pretty good living considering the kind of party animals you get working carnivals. The game joints were all commission based some of them would get a 50 percent commission back before 2000, Now they are all on minimum wage , I was talking to a carnival veteran and he said that one company who has most of the bids for the larger fairs here in Oregon has been hiring people from south africa expedited or something through some other company, so they can pay them less then an american minimum wage. That is the carnival now of days. So what needs to be done is to just take these people on, new companies need to take over, people need to launch warfare get involved with everything they can with better pay , get people back on commission. Paul Getty wrote in his book “How to be Rich” , that we need to make the government our opponent, he wasn’t talking about Anarchy he was talking about this socialist B.S.. All the government pay scale, no Government officer or employee wants the public to earn more than they, they want us all to be on the same pay scale or less more than likely they don’t think we should earn as much because we are not working on a government job, military officers do 8 years of schooling and get about 3000 a month , who wants to accept that who is truly industrious and diligent. Believe me the government workers are a big instigator and influence on how people think about productivity , they want us all to sleep on our jobs like they do and get paid for nothing some socialist pay scale

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