I remember my very first kiss like it was yesterday. I was on year 7 camp, it was a Thursday night about 7:30pm, I had a serious girlfriend who I’d been holding hands with for several weeks and we finally locked lips. I thought I felt the world shaking.
I also remember my first decent commission cheque like it was yesterday. I was 23 years old, I’d been flirting with decent results and one month it just clicked. I closed a bunch of deals and received a $21,140 commission cheque. I walked out for a coffee in the afternoon and felt like I could buy the coffee shop.
Both big moments in my life!
While most people master the basics of kissing, and go on to bigger and better things, a lot of businesses do not master the basics of commissions structures- and so they lose great people.
Complaints about commission are a constant conversation in my job- it's one thing that will cause people to leave otherwise great businesses, jobs and managers. So it's important to get the basics right.
And what are the basics that stop your employees talking to someone like me? Here’s a simple checklist:
1. Everyone knows how to calculate how much commission they will get paid based on the revenue they bring in and the targets they have.
2. Everyone knows how to calculate how much commission they will get paid based on the revenue they bring in and the targets they have.
3. Everyone knows when they will get paid their commission.
4. Everyone gets paid the commission they earn.
5. The structure is competitive within your industry and rewards sales people for their efforts when they go BIG.
6. You've stuck with it for a prolonged period and haven't had people in your team complain about the commission structure.
If your commission structure doesn’t reward great performance, then great performers won’t stick around.
I’ll leave the basic kissing checklist for someone else to put together.