The lead question defines the relationship
How leads are generated is one of the most fundamental decisions in a commission only sales arrangement. It shapes agent expectations, determines commission rates, and defines who is responsible for the top of the funnel.
There is no single right answer, but there is a right answer for your situation.
Model 1: Agents source their own leads
In this model, agents are responsible for finding and qualifying their own prospects. They use their networks, do their own outreach, and build their own pipeline.
This works well when agents have deep industry networks and existing relationships. Your commission rates need to be high enough to compensate for the time spent prospecting. You want to minimise your involvement in the sales process. Your product appeals to a broad market that agents can access through their own channels.
The advantage is that you have zero marketing cost and agents are fully independent. The disadvantage is that you have less control over who agents are targeting and how they are prospecting.
Model 2: You provide qualified leads
In this model, your marketing generates leads and distributes them to agents for follow up and closing. Agents focus purely on conversion rather than prospecting.
This works well when your marketing is already generating more leads than your team can handle. Your product requires educated buyers who have shown initial interest. Agents are strongest at closing rather than prospecting. You want tight control over messaging and qualification.
With provided leads, you can justify lower commission rates since the agent's effort is concentrated on closing rather than the full sales cycle. However, you take on the cost and responsibility of lead generation.
Model 3: The hybrid approach
Many successful programs combine both. You provide a base level of leads while encouraging agents to generate their own. Commission rates might differ: a lower rate on company provided leads and a higher rate on agent sourced leads.
This hybrid approach gives agents a floor of opportunity while rewarding entrepreneurial effort.
How to distribute leads fairly
If you provide leads, distribution must be fair and transparent. Options include round robin allocation (leads assigned in rotation), performance based allocation (top performers get more leads), geographic allocation (leads go to the nearest agent), and first to respond (leads go to whoever claims them fastest).
Whatever method you choose, be transparent about it. Agents who perceive unfair lead distribution become disengaged quickly.
Quality over quantity
Ten qualified leads are worth more than a hundred unfiltered contacts. If you are providing leads, invest in qualification before distribution. Agents who receive consistently bad leads will lose faith in the program, regardless of what you promise.
Zepys enables you to manage lead flow and agent allocation within the platform, creating transparency and fairness in how opportunities are distributed.