Underperformance is normal
Not every agent you engage will become a top performer. This is inherent in the commission only model and is actually one of its advantages. Unlike salaried employees who underperform at your expense, commission only agents who do not produce cost you nothing. The system is self correcting.
That said, there are steps you can take to maximise agent performance before accepting that a particular relationship is not working.
Diagnose before you act
Before assuming the agent is the problem, check whether the environment is the issue.
Are your sales materials adequate? If agents do not have the tools to sell effectively, even talented salespeople will struggle.
Is your commission rate competitive? Agents with better options will not prioritise a product that pays below market rates.
Is the product a good fit for agent selling? Some products genuinely do not work well with independent agents, regardless of the agent's skill level.
Are you responsive to agent questions? If agents wait days for answers, they lose momentum and motivation.
If the environment checks out and the agent is still not producing, the issue is likely with the agent themselves.
The coaching conversation
Reach out to the underperforming agent for a candid conversation. Not a reprimand, but an exploratory discussion.
Ask what challenges they are facing, what objections they are hearing, and what would help them sell more effectively. Sometimes the answer reveals a fixable problem. Maybe they are targeting the wrong customer segment, missing a key selling point, or struggling with a particular objection.
Share what your top performing agents are doing differently. Specific, actionable advice is more helpful than general encouragement.
Adjusting the arrangement
If coaching does not improve results, consider adjusting the terms.
Try a different territory or market segment. The agent might perform better with different prospects.
Offer a temporary commission bonus for a defined period to create urgency and additional motivation.
Provide warmer leads if available, to reduce the agent's prospecting burden and increase their conversion rate.
When to part ways
In a commission only arrangement, parting ways is simpler than with employees. There is no firing process, no severance, and no awkwardness about termination.
If an agent has been inactive for 30 days despite your coaching and support, a polite message acknowledging the situation is appropriate. Thank them for their time, leave the door open for future collaboration, and move on.
Some agents sign up enthusiastically but never start selling. This is common and should not be taken personally. People's circumstances change, other opportunities arise, and not everyone follows through on initial interest.
Preventing underperformance
The best approach is to set expectations clearly from the beginning.
When onboarding new agents, communicate what success looks like, what support you provide, and what you expect in terms of activity and communication. Agents who understand the expectations upfront are more likely to either meet them or self select out early.
The portfolio approach
Think of your agent network as a portfolio. Not every investment pays off, but the overall return matters more than any individual result. If you have ten agents and three are consistently producing, you have a successful program regardless of what the other seven are doing.
Continuously recruit new agents to replace natural attrition and improve the overall quality of your network. The more agents you onboard, the better your odds of finding the high performers who will drive significant revenue.