Generally speaking, commission only sales agents work for a particular company and are paid a commission for every lead that they generate. This means that there is less incentive to work hard to generate leads that are successful. Also, it limits the willingness of the sales agent to offer long term value to an individual account.
commission-only sales reps
Historically, real estate industries have staffed their commission only sales agents teams with commission-only sales reps, as they were an ideal way to attract the best sales reps and allow them to climb the ladder of success. However, this model has a few drawbacks that can be problematic for an organization. Aside from the fact that it can be an unprofessional way to conduct business, it can also waste valuable leads and can cause turnover. As a result, organizations should avoid using commission-only sales compensation in their recruiting and retention strategies.
The key to avoiding the unprofessionalism of commission-only sales reps is to design a pay mix that matches the unique roles and sales rep tenures of your sales team. Creating a pay mix that pays more for less experienced sales reps and less for more experienced sales reps is a good way to ensure that your organization will be able to attract and retain sales talent.