Recessions reveal the strength of your agent model
During economic downturns, the commission only model shows one of its greatest advantages: variable costs. When revenue declines, your sales costs decline proportionally. You do not face the painful decision of laying off salaried staff or carrying payroll you cannot afford.
But this does not mean your agent program is maintenance free during a recession. Active management is essential.
Immediate adjustments
Reset expectations
Sales targets set during growth periods are not realistic during a downturn. Adjust targets to reflect market conditions. Agents who were hitting target before the recession and are now missing it need to know that the problem is the market, not their performance.
Reassess your ideal customer profile
Recession shifts buying behaviour. Some customer segments contract while others remain stable or even grow. Help agents identify which segments are most resilient and redirect their prospecting accordingly.
Tighten your value proposition
In a recession, customers scrutinise every purchase. Your value proposition needs to be sharper than ever. Help agents articulate the ROI of your product in terms of cost savings, efficiency gains, or revenue protection. "Nice to have" positioning does not survive budget cuts.
Protecting your best agents
Identify who matters most
Not all agents contribute equally. Identify your top performers and invest in retaining them. They will be the foundation of your recovery when the market turns.
Consider temporary support
For your most valuable agents, consider temporary measures like a small monthly retainer, a higher commission rate, or a guaranteed minimum payment. The cost of these measures is almost always less than the cost of losing and replacing a top agent.
Increase communication
During uncertain times, agents need more communication, not less. Increase your update frequency. Share honest assessments of the market. Be available for conversations.
Operational adjustments
Reduce friction everywhere
In a tough market, every unnecessary step in the sales process costs deals. Review and streamline your quoting process, approval workflows, and customer onboarding. Speed and simplicity become competitive advantages.
Invest in materials
While competitors cut their sales enablement budgets, invest in yours. Better case studies, sharper competitive positioning, and stronger objection handling materials help agents win the deals that are still available.
Focus on retention
Acquiring new customers is harder during a recession. Retaining existing customers is more valuable than ever. If your agent commission structure does not reward retention, consider adjusting it.
Positioning for recovery
Maintain your agent bench
Do not slash your agent network to match current demand. When the recovery begins, you need agents ready to capitalise on returning demand. Rebuilding a depleted agent network takes months.
Recruit opportunistically
Recessions shake loose experienced salespeople from companies that make cuts. Some of the best agents become available during downturns. If you can absorb them, this is a strategic opportunity.
Document what works
Pay close attention to what selling approaches work during the downturn. Which messages resonate? Which customer segments are still buying? What objections are new? This intelligence shapes your playbook for the recovery and for future downturns.
The long view
Recessions end. Businesses that maintain their agent networks, support their best people, and adapt their strategies during downturns emerge stronger when growth returns. The commission only model, with its variable cost structure, is particularly well suited to navigating economic cycles.