The lead generation question
One of the most common concerns business owners have about commission only sales is lead generation. If agents are not employees, who generates the leads? The answer depends on your model, but the most successful businesses use a combination of approaches.
Option 1: Agents generate their own leads
Many experienced commission agents prefer to work their own networks and generate their own leads. They have built relationships over years and know how to prospect in their territory.
This model works best when your product has a clear value proposition that agents can articulate quickly, and when the target market is broad enough that agents can find prospects through their existing networks.
The advantage is zero lead generation cost for you. The downside is that you have less control over pipeline volume and quality.
Option 2: You generate leads, agents close them
In this model, you run marketing campaigns (content, paid ads, partnerships) and distribute qualified leads to your agents. The agents focus purely on converting warm leads into customers.
This is more capital intensive but produces more predictable results. It also makes it easier to attract agents because you are offering them warm leads, which is a significant incentive.
Option 3: The hybrid model
The most effective approach is usually a hybrid. You generate a baseline of inbound leads through content marketing, SEO, and targeted advertising. Agents supplement this with their own outreach and networks.
This gives agents enough warm leads to stay engaged while encouraging them to expand beyond what you provide.
Practical lead generation tactics
Content marketing. Publish articles, guides, and case studies that attract your ideal customers through search. These generate inbound enquiries that you can route to agents.
Referral programs. Offer existing customers an incentive for introductions. Referred leads close at much higher rates than cold outreach.
LinkedIn outreach. Provide agents with templates and talking points for LinkedIn messaging. This is particularly effective for B2B products.
Local events. For businesses with a geographic focus, local business events, trade shows, and networking groups are excellent lead sources.
Distributing leads fairly
If you are generating leads centrally, you need a fair distribution system. Rotate leads by territory, specialisation, or performance tier. Make the rules clear so agents trust the system.
Zepys provides infrastructure for lead distribution and tracking, which takes the manual work out of this process.
The bottom line
The best commission sales programs combine business generated leads with agent sourced leads. Invest in inbound marketing to create a steady flow, then let your agents amplify it with their own networks.