Twenty Cents on the Dollar:

Pay or Walk . Yes, this sounds very Glen-Garry. For many sales professionals companies seem to forget "Free" accounts that even pay only 5% profit on "everything" it takes for the fulfillment, an absolute profit of 5% at zero loss and great chance of referrals, extended lifetime value of a customer/client with opportunity to further up-sale value in the funnel is what business is about in sense of two critical areas: Get new clients and keep the ones you have. So why are "floor-owner" and many businesses cheap to pay well to sales people who are often the "superhero" of establishing accounts to propel companies forward? Take a moment to explore this premise because salary with ultra-low, long wait pay cycles (often hidden in language as "bonus") leave the fact behind "sales-professionals" are masters of a honed craft well beyond order takers. Order takers take orders. "We Create Opportunity" by being fined tuned, persistent, highly trained, intuitive of understanding people (wants, needs, fears, desires)

Where is the ethics of companies who rely largely on professional sales yet try to escape lead creation, back-end support, expect complete secretarial work by a six-figure earner ?then pay commission percentages as if the seasoned pro is a fresh high-school graduate new to the professional world??

Since it is agreed “sales-is-not-a-dirty-word” lets be sure to rewarded as professionals even many without 4-year degrees, M.S. master level education in business, communications and related degrees. In truth real-closers' with high acumen for personal development acquire skills well beyond those of “higher-education”. As for failing to learn there is perhaps no other career that demands multitude failures amidst rejection at a continual rate.?

Sales Confidence, Strategy, and Proper Compensation

Sales professionals are responsible for not only acquiring new clients but also retaining and expanding existing ones. Yet, the compensation structures offered often fail to reflect their contributions.

Sales professionals are the creators. A seasoned sales professional is a master of human psychology, skilled in uncovering not just a client’s needs but their fears, desires, and unspoken goals. They understand d the value of wants and often "help people and companies" discover what those "Wants Are in Service and Products. This level of expertise, coupled with the ability to handle rejection and failure daily, is worth far more than a few pennies on the dollar. Proper compensation—starting at 20-24% commission and rising to 30% or higher for exceptional results or niche industries—isn’t just fair; it’s essential. (literal or arbitrary, depending ...)

Why Proper Commission is Wise

1. Retention of Talent: Skilled sales professionals are not easily replaced. They invest years into mastering their craft, often through self-driven personal development and a relentless pursuit of excellence. Failing to reward them appropriately results in high turnover, costing companies far more in the long run.
2. Increased Lifetime Value: A well-compensated sales professional has the motivation and resources to cultivate long-term relationships. These relationships often translate into higher customer lifetime value, repeat business, and referrals that continue to benefit the company for years.
3. Competitive Edge: Businesses that offer competitive pay structures attract top-tier talent. These professionals, in turn, drive higher revenues, enabling the company to outperform competitors who undervalue their sales teams.
4. Ethical Responsibility: Sales professionals often take on roles far beyond their job descriptions, including lead generation, administrative tasks, and post-sale support. To ask this of someone while offering subpar compensation is not only unethical but also short-sighted.

As agreed, “sales-is-not-a-dirty-word,” face rejection and failure head-on, learning and adapting in ways few other careers demand.

It’s time for businesses to recognize the real value sales professionals bring—not just in dollars but in relationships, trust, future opportunity. Sales professionals don’t just close deals—they transform companies by often being a backbone of fabulous reputation along with good online reviews that are being considered as "real-truth" before purchases and investments are considered.

Value of Commission -Respectful Commission: 5% and Beyond is still an Addition to the Company: Investing in Sales Professionals Pays Profit Businesses ...

It is not uncommon for companies to view commission percentages like 5% or higher as "too expensive." This perception often comes from a narrow focus on profit margins without fully considering the broader financial and operational impact of employing highly skilled, commission-only sales professionals. Let’s break this down logically with examples to demonstrate how even 20%-30% commission structures can significantly benefit the company’s bottom line.

The 5% Myth: Why “Too High” is Misguided

Many businesses operate under the belief that every percentage paid out to sales professionals diminishes profits. However, this logic is flawed when evaluated holistically. Here’s why:

1. A Net Positive Gain: If all expenses—taxes, overhead, fulfillment, and other operational costs—are accounted for, any profit remaining after costs is incremental revenue for the company. A skilled sales professional operates as a "profit creator." Without their effort, there might be no revenue from that account at all.
2. Opportunity Cost of No Commission: Without skilled sales professionals, companies often rely on marketing campaigns or less personalized sales strategies, which may have lower conversion rates. The incremental cost of paying commission is far outweighed by the consistent revenue stream generated by professionals.

20%-30% Commission

Higher commission percentages may seem daunting, but they reflect the value brought by professional salespeople, particularly in high-ticket or B2B sales. Let’s explore how this benefits the company:

1. Higher Margins in Skilled Sales: Experienced sales professionals often close deals at higher prices and with better terms than less experienced or automated methods. Their rapport-building and negotiation skills can improve profit margins.
2. Loyalty and Retention Benefits: Well-compensated sales professionals are more likely to remain loyal to the company, reducing turnover costs. The cost of replacing a skilled salesperson (recruitment, training, lost revenue during onboarding) can exceed $50,000. A 20%-30% commission ensures the company retains top talent.
3. Expanded Account Lifetime Value (LTV): Sales professionals often generate repeat business and referrals, dramatically increasing the LTV of accounts.

Exceeding On-Target Earnings (OTE):

Properly compensating sales professionals motivates them to outperform targets. A motivated salesperson doesn't just meet quotas—they exceed them:

• Case Study: A company sets a $500,000 revenue target, expecting a 20% profit margin ($100,000). The salesperson earns 20% commission on profits ($20,000), leaving $80,000. Motivated by higher earnings, the salesperson closes $700,000 instead, increasing profits to $140,000. Their commission rises to $28,000, and the company retains $112,000—exceeding OTE by 40%.

Ethical and Practical Considerations

Sales professionals bring value beyond dollars:

• They cultivate trust and relationships that marketing cannot.
• They offer personalized solutions, improving customer satisfaction and loyalty.
• They shoulder the rejection and challenges of sales—a job few can master.

Underpaying these professionals not only undervalues their contributions but also risks losing top talent to competitors who recognize their worth.

Conclusion: A Necessary Investment

Paying 20%-30% commission to skilled sales professionals is not an expense—it’s an investment. These professionals generate value that far outweighs the costs, driving profits, customer loyalty, and competitive advantage. Companies that embrace this model will consistently outperform those that undervalue their sales teams, achieving sustainable growth and long-term success.

The point to internalize is simple: money at zero loss of time and only an increase of a bottom line when everything is said and done is still good. The reason why NicholasCarter's ABCDirectSales is absolutely to take a $25 down account any day over nothing. Once in the sales funnel at any level adds a few bucks to the pocket and massive chance to provide more value later, get 5-Star reviews in the meanwhile among many more benefits of profit.

Professionals in the Craft of Creating Accounts and long-paying relationships should set personal value that 1%, /2% is at lowest a stab to value when knowing companies can easily afford 15%, 20%, 25-30% payouts when checks are well above total cost to the company. You deserve financial reward and pride of being part of a company that values those steer the company to better opportunity. (yes, to be clear the premise here is paying what sales professionals are worth and for trained closers of highest caliber accepting opportunity that offers well paying and often paid commission-checks. Are you self-valued at a 20% producer or higher? You read this so of course you are!! - note: % here are arbitrary - there are many cases when much lower % pay very well and are much-worth the account/company to be part of.

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