In the sales industry, one of the hottest topics of discussion is commission selling vs. salary selling. There are benefits to using both, but many people are die-hard advocates of one or the other. Some people believe that commissions are the only payment method for real sellers, while others would like to see a balance between the two. If you’re trying to figure out which payment method to use in your business, there are a few things to consider. When it comes down to it, however, it’s really a matter of preference. Although both have pros and cons, they are pretty much the same.
When discussing commission sales vs salary sales, it’s important to consider your employees. Would they be offended if you only offered them a commission? Some people take this as a sign that you don’t want to pay them the money they deserve. People may be afraid to sign up with your company because they are not making enough money or making enough money. On the other hand, there are some people who see commission selling as a challenge. You need to complete as many deals as possible to get a paycheck. They don’t see it as stressful or worrying, more like a competition to see how well they can do.
If you choose salary sales in the commission sales versus salary sales debate, you may have a larger number of people joining your business. They see this as a form of guarantee that they will receive some form of payment. Even if the salary is low, it could be enough to influence employees. When using salary in sales, it is important to have a good balance between salary and commission. Many companies that offer salespeople salaries also offer them commissions if they exceed their offer. How much are you willing to pay exceptional employees? You have to consider all angles.
When you think about commission sales versus salary sales from a business owner’s perspective, it can be tempting to offer commissions, especially in the current economic recession. You can use it as an area where you can save money. While it’s tempting, you still need to be considerate of your employees’ needs and wants. If the majority of your employees want both salary and commission, it’s a good idea to agree on a common source. If your employees are old-school salespeople, chances are they’ll only be working on a commission basis. Ask your employees what they prefer. This also lets her know that you genuinely care about her thoughts and feelings.
There is no right answer to the commission selling versus salary selling debate as every business is different. Employees may prefer one over the other. If that’s the case, go with what the masses want. If you’re just concerned about what your business can afford, you need to consider how much it would cost your business to use both methods and choose the less expensive one.