Remuneration is the primary incentive of salespeople. So how do you gauge if you have got genuinely great salespeople, or just people who are milking you?
Simple – check your current remuneration package for salespeople if it is truly based on performance.
For example, if you are paying your salespeople with a high fixed monthly salary of US$8,000, and a commission of 2%, you can not challenging your salespeople enough. Every month, you are paying a high fixed pay, and your salespeople become cost centers.
Conversely, check the insurance or financial advisory industry, where it is not uncommon to find some of the most amazing salespeople, who are paid purely on high commission and no fixed salary (sometimes amounting from 20 to even 50% per sale, with small subsequent commissions of a few percent when clients renew).
Such salespeople will be challenged to perform, and will have no incentive or sane reason to sit behind a desk whole day. Every day has to count, and such salespeople will ply the streets, burn through the phones, and meet as many prospects and customers per day as possible. The net result is that your salespeople will be profit centers.
So, what is your remuneration package like? Is it closer to a high fixed salary with a low commission, or is it closer to a low (or none) fixed salary with high commission?
It is your choice.