I can truly say this is my area of expertise. We build commission - only sales teams for startups and have been building them collectively for 30 years with many successful exits.
A commission only plan is a completely different structure than a Base + Commission plan. There are many advantages to being a commission only sales person, so make sure you satisfy the following: (this is a short list)
- A commission only person should have the opportunity to earn more than a base + commission rep (they are taking on more risk), and have lifetime ownership of the accounts she brings in
- A commission only rep should be compensated partly in equity after reaching certain performance and vesting requirements (as you would with any person working for free on your team)
- A commission only rep has the flexibility to create his own schedule, work remotely and have unlimited personal and sick days
- A commission only rep needs a world class leadership team to motivate and inspire her on a daily basis
- A commission only rep needs to sell a product that changes lives, not just makes money.
We developed a proprietary algorithm that helps us calculate competitive compensation plans for commission only teams, taking into consideration the above as well as many other factors. I'd be happy to run your company's numbers through it to give some recommendations. We're also piloting a recruiting software that specifically evaluates sales people and looking for beta testers.
You can reach me through LinkedIn.
Have a good one!