Commission or non commission sales reps?
In this blog, we will determine whether commission-only sales professionals could effectively work with modern Managed Service Provider (MSPs).
Finding the right approach to increase sales through hiring salespeople doesn't always yield desired results. As the Managed Service Provider industry experiences year-on-year growth, it's crucial to devise the right strategy to avoid revenue loss.
The issue lies in IT companies potentially allocating a significant budget to Account Executives /closers with an impressive sales track record, only to see no tangible outcomes.
While this statement dates back a decade, it remains relevant. In this article, we will discuss:
- Pros & Cons
- Fit with MSPs
- Recommendations
I recently discussed this with a Managing Director who considered this approach for his 10-employee MSP to minimise expenditure.
It seemed like a quick fix for the wrong problem.
If an IT support service company aims to sell low-ticket offers (3-4 figures) with a quick turnaround, it presupposes high-quality prospects and the MSP’s ability to onboard clients rapidly at a high rate, which isn’t always the case.
If you’re considering commission-only reps as the preferred option, you should take into account the following:
- Your marketing and brand awareness are at the necessary level.
- You have a short sales cycle to enable your reps to leverage commissions.
- You have a well-defined sales process.
- You have robust service delivery.
- You have strong sales leadership and can provide sales training.
The best approach is to gain hands-on experience with the sales process. If it exceeds 2 months, consider having an in-house team of Account Executives (Commissioncrowd, 2024).
While commission-only reps may be suitable for entry-level roles, they may lack industry-specific experience and familiarity with lengthy sales processes.
Consider this: you may not be in a position to pay commissions to your staff within 3 months, leaving reps struggling to pay rent in the meantime.
I believe it’s best to have Account Executives fully committed to your MSP without the stress of earning commissions when delivering compelling presentations to your long-term clients who seek a lasting partnership.
