In Part One we saw that commission sales is better for the salesperson (who produces) and in Part Two we learned it is better for the company. But, what about the fact that commission sales will cause some salespeople to try and make the sale dishonestly in their quest for the all-mighty dollar?
The problem comes when there is a character flaw in the salesperson. In this case, what they are doing does not in fact serve the person to whom they are selling.
Fortunately, there are two reasons why it is in the best interest of the salesperson to be scrupulously and fanatically honest when selling:
1. It’s the right way to be (duh) :-). But, of course, we can’t be so naive as to go with that as the only reason since – let’s face it – not every salesperson is interested in that reason. But that’s okay. Here’s why:
2. It’ s more profitable both short-term and long-term. Who gets more referrals, the dishonest salesperson or the honest one? The one who provides extreme value compared to the price or the one who does not? And, even immediately, unless someone is simply a really proficient con-artist (and there are indeed those in the world) knowing how to play upon the greed of the “I deserve something for nothing consumer” (and there are indeed those in the world), it’s difficult to pull off that kind of crud.
Years ago I met a business owner who was described both by others and even himself as being somewhat heartless and uncaring. Yet, his company’s level of service was above and beyond; flawless. His money-back guarantees were the best; he questioned no one who wanted a return or complained (even incorrectly) about a problem with the product and he and his staff did whatever they could to please. Why? “It’s good for business” he told me.
So, putting great intent (which is even more powerful) aside, in commission sales – which is what you are in whether you own the business or simply have the title of salesperson – it pays much more to be good and to do good…for the customer.
We’ll wrap up our series in Part 4 with a final thought. Perhaps it’s the secret regarding why some people wildly succeed in commission sales and why others don’t. And, it has nothing to do with ability which, while very necessary, is not the determining factor.
What do you think it is?
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Bob,
Really looking forward to part 4! My experience says that when you combine character, competence, and a strong work ethic with someone who understands that life (not just “selling”) is about serving others – you get a wildly successful MacGuffin seller!
Regarding today’s post-great job! Identifying the “long-term” relationship aspect of presenting (and it starts on the first call) as the key to a “seller” staying honest is spot on! We have all heard the phrase “Don’t burn your bridges behind you” and it is an important one to remember. However, I would suggest that an even more important rule to be “always be building bridges for others. The bridge you build “MIGHT” lead to the deciding to do business with you now or later, but if not, it will create new value for them, so you will have been successful!
Thanks again – always LOVE reading your posts – but not as much as your books! Have a great Memorial Day!
Bob, the retail sector (think big ticket) has been abandoning the commission model for more than 10 years now. Circuit City, for example, was once the gorilla of the consumer electronics industry. In the name of efficiency (cutting expenses) they gave up the commission model – a model they were quite good at back in the day. Not only did they cut expenses, they lost one of their most valuable resources, the commission-based sales team that had helped build their business. Their training and support was stellar at one time. Their people were among the very best. POOF! They blew it up in one fell swoop and that was the beginning of the end for them. Suddenly, they were no better than anybody else in their space. Companies who begrudge the incentive of commission to their salespeople will more often than not make decisions based on that emotion, and may end up doing the very thing that can harm the company the most. When done right, my experience is that the old barbershop model works very well. Each salesperson behaves as though he is in business for himself (he’s got his own chair and his clients, but he operates under the roof of a specific barbershop). Like you, I believe strongly in the commission model. I’m biased of course. It’s how I got started almost 38 years ago. Well done! Thanks.
I don’t know of any business (bar some government entities) that isn’t ‘in the big picture’ working on commissions. Even churches work on a spiritual and financial commission. It’s just a matter of perspective and time. If we see the end result over a several year period the “bottom line” of a P&L statement is a business’s commission.
I always get a kick (sometimes kick in the side) when someone states with a raised eyebrow “You work on commission.” . When in fact the whole world is based on this very concept. When I go swimming my sales “swimming” is paid in the commission of moving forward and staying alive. First in sales means getting to the other side of the lake before the rest. Failure is sinking to the bottom, effectively ending my swimming career.
There are certain sales fields (as you mentioned) where the sales model is “crook”. But by far the ethics based sale will win out in the long run every time. Which takes me back to my initial point. It’s our perspective. When it shifts to the person receiving the benefit – the sales process (albeit longer) is a much more rewarding experience. Doesn’t sales mean “to serve”?
Bob,
There are just far too many examples of sales people who have failed due to unscrupulous behavior.
Those who succeed in commission sales are honest not only to themselves but to those they serve. And they always have an endless hopper of repeat sales, up sells and referrals.
When I was in the position of hiring sales people, I wouldn’t hire them unless I felt deep down inside that they were above reproach. I had seasoned sales people that I turned away because I didn’t feel comfortable with them and I figured if I felt that way the customers would feel that way.
I am still in contact with those sales people that I hired and they are still with that company and they are still more of the more successful sales people in that organization.
But the key quality that they had was honesty.
Keep up the great work, Bob!
Here’s to Your LifetoSuccess,
John Clark
Great posts Bob (as always)
And I’ve decided to do my own little “experiment”….I’m going to join a “commission only” company next week….something I’ve never done….and blog about my experiences.
As a true ‘go-giver’ I am excited about this and to show people that you can use the same structure whether you are on the ‘internet’, doing ‘home parties’ or a ‘salesperson’ in a store.
Wow – loved the comments and teachings in your responses. Thank you so much. While I didn’t respond individually, please know they were all read (actually, several times), enjoyed, and learned from.
There’s always a space for the dishonest, or for the go-getter who ‘forgets’ that he’s not supposed to go over the top of his client on the way to the award stage. And sometimes there’s not a lot of practical difference. This is why I warm to the Go-Giver series in such a passionate way: because shifting focus away from self/company onto client, gives the best results all round – and may even cause the ‘go getter’ in a Go-Giving team to pause. There’s hope.
Being Uncommon Serves..
Anthony
I hear ya too. They were the best.