We are happy with the effects so far

  • We have lost some salespeople, but (as we expected) they were more the advocate-style salespeople who were not such a good cultural fit for us.
  • Stating we don't pay commissions means that salespeople who would be a poor cultural fit are deterred from talking to us (saving us recruitment effort). Better still we've found that not having commissions has already been a big factor in helping us to recruit partnership-oriented salespeople.
  • It's taken a bit longer to increase the collaboration between sales staff. The competitive environment that a commission routine sets up takes a while to change, but while that change is more gradual, we can see it happening.
  • One thing we neglected to consider as we made the change was in how the commission structure feeds into the self-evaluation of sales. Everyone likes feedback on how they are doing, and removing commissions takes away a habitual feedback mechanism, albeit a critically flawed one. There's no simple answer to this, while we can come up with indicators essentially it boils down to recognizing the fact that sales, like so many professions, is a multi-faceted activity that resists simplistic external measures.

It has allowed us to take the issue of money off the table when having discussions / negotiations regarding staffing and projects, and this has been immensely positive. There is a significantly higher level of trust when it comes to discussions on new opportunities as there is no question surrounding intentions / motivation being driven by personal financial gain. -- Ben Escudero, Client Principal in Sydney