The Appeal of Commission Only
For startups watching every dollar, commission only sales is enormously attractive. You only pay when revenue comes in. There is no base salary to fund during slow months and no payroll risk if a hire does not work out. When structured well, it aligns the interests of your sales partners directly with your growth.
Finding the Right People
Not every salesperson will work on commission only terms. The ones who do are typically experienced, confident in their abilities, and selective about the products they represent. They are looking for products that solve real problems, have clear pricing, and offer competitive commission rates.
Zepys is built specifically for this model. It connects product companies with independent sales agents who operate on performance based terms. Instead of posting job ads and hoping for the best, you can access a marketplace of agents who are actively seeking new products to sell.
Setting Commission Rates That Work
Your commission rate needs to be high enough to attract quality agents but sustainable for your business. In B2B, rates typically range from 10% to 30% depending on the product, deal size, and sales cycle length. Consider offering higher rates for the first few deals to incentivise agents during the ramp up period.
Providing Sales Enablement
Commission only agents will not invest time learning your product if you make it difficult. Provide clear sales collateral, product demos, objection handling guides, and a simple process for submitting deals. The easier you make it for agents to sell, the more effort they will put in.
Managing Performance
Track each agent's pipeline, conversion rate, and revenue contribution. Share this data transparently. Recognise top performers and provide constructive feedback to those who are underperforming. Regular check ins keep agents engaged and ensure they prioritise your product alongside others they may represent.
When to Transition
As your revenue stabilises, you may choose to bring some sales functions in house. Use the data from your commission only period to understand your sales cycle, ideal customer profile, and effective messaging. This knowledge makes your first sales hire far more likely to succeed.