Trump Card Could adopting a straight-commission system be a good bet for your business?

Are you struggling to feed the ever-voracious payroll monstereach month while failing to achieve the sales results you need?You're not alone: According to Deloitte &Touche's "2003 Strategic Sales CompensationSurvey," 54 percent of sales leaders aren't satisfied withsales force performance. And 52 percent of respondents think thatwhen low performers aren't culled from the sales force, thelack of accomplishment acts as a "drag on aggregateproductivity."

If you wish to bolster sales without adding much overhead,commission-only sales reps may be a good option. In thestraight-commission model, your reps "eat what theykill," and you pay only for results. As with any compensationplan, it has both merits and snags. To gauge whether a strictpay-for-performance system will work for your sales shop, considerthe following issues:

• Working withentrepreneurial reps:
• You're a risk-taker, so why notengage reps with a healthy appetite for daring? According toMichael Herman, principal for Deloitte's Human Capital AdvisoryServices in New York City, "A commission-only plan willattract the most aggressive and self-confident sales personalitiesbecause they like the high potential earnings and relativeindependence." Expect to draw exceedingly talented sellerscapable of posting big numbers.

• Weeding out theweak:
• Reps on straight commission will beseasoned, hungry and motivated. The compensation model "weedsout the weak salespeople pretty quickly," says AndrewCagnetta, 39, CEO of Transworld Business Brokers LLC in Fort Lauderdale,Florida. Cagnetta's business brokerage company will use 35straight-commission reps to write a projected $4 million in salesfor 2004.

• Findingcommission-only reps:
• Many of the techniques for doing soare the same as if you were seeking base-plus-commission reps:networking meetings, industry contacts and headhunters. Herman saysone twist is that you'll attract only a subset of all salesreps, so "expect a few more declines than a more generalsearch would produce."

Joe Takash, president of Victory Consulting and a sales speaker andcoach in Chicago, adds, "Make a commission structure generousenough, and thy door shall forever be knocked upon."

• Setting up acommission structure:
• Arriving at the right percentage forreps will take some legwork. Herman suggests researching pay levelsin your industry to set a base line. Then you'll need to assurethat you'll still make a profit after the rep gets his or hercut. Cagnetta, for example, pays reps 50 to 70 percent, based onproduction each calendar year. Be aware that compensation costs canvary greatly from month to month.

• The potential darkside:
• The cons of going straight commissioninclude a pressure-cooker stress level for reps and selfish repsunwilling to engage in team building. Cagnetta adds that it'snot possible to hire young talent, as the greener reps"don't have the resources to last through the start-upperiod."

And since reps working on straight commission tend to beaggressive and self-confident, they "may view themselves asfree agents and dislike too much company interference," warnsHerman.

• Retaininghigh-fliers:
• Minimizing sales force turnover is anissue for any team, and may be especially pronounced forpay-for-play reps. Takash explains that it's always difficultto keep reps because it's a "high-stress, high-paying,burnout job in many industries." He adds that a fair andgenerous commission structure will help minimize employeechurn.

Cagnetta has had good luck keeping his reps because he placesspecial emphasis on making Transworld a great place to work:"Our family and team spirit, coupled with growing opportunity,makes reps want to stay."

Kimberly L. Mccall (aka Marketing Angel) is president ofMcCall Media & Marketing Inc. (www.marketingangel.com) and author of Sell It, Baby! Marketing Angel's 37Down-to-Earth & Practical How-To's on Marketing, Branding& Sales.