Commission only does not mean no standards
One of the perceived advantages of commission only sales is that underperformers cost you nothing because they earn nothing. While technically true in terms of direct cost, inactive or poorly performing agents can still damage your business through brand misrepresentation, neglected leads, and reputational risk.
Knowing when to end an agent relationship is as important as knowing how to start one.
Clear signals it is time to part ways
Zero activity over an extended period
An agent who signed up enthusiastically but has not generated any activity in 60 to 90 days is unlikely to start. Check in first to understand why. If there is no clear path to activation, it is better to release them and free up any territories or leads they were assigned.
Brand violations
If an agent makes misleading claims about your product, uses aggressive sales tactics, or represents your brand in ways that conflict with your guidelines, act quickly. One brand violation with a warning is reasonable. Repeated violations warrant immediate termination.
Customer complaints
When customers report negative experiences with a specific agent, investigate immediately. A pattern of complaints indicates a fundamental problem with how the agent sells, and no amount of coaching will fix an agent who does not respect your customers.
Ethical concerns
Any hint of fraud, dishonesty, or unethical behaviour should trigger immediate action. This includes fabricating sales data, misusing customer information, or making unauthorised commitments on behalf of your business.
Persistent underperformance despite support
If you have provided training, materials, leads, and coaching but the agent still cannot close deals after a reasonable period, the fit is simply not there. This is not a failure on either side. It is a mismatch.
How to end the relationship professionally
Review your agreement
Check the termination clause in your agent agreement. Follow the notice period and process you agreed to. Skipping steps can create legal exposure.
Have an honest conversation
Tell the agent directly why the relationship is ending. Be factual and specific. "We have not seen any sales activity in three months and we need to reallocate the territory" is honest and fair.
Handle pending business
Clarify what happens to deals currently in the pipeline. If the agent has legitimate prospects near closing, consider allowing them to complete those deals or negotiate a referral fee.
Protect your assets
Revoke access to your CRM, sales materials, and any company systems. Collect or deactivate any materials they have. Remind them of their confidentiality obligations.
Maintain the relationship
End things respectfully. The sales world is small, especially in Australia. An agent who leaves on good terms might refer business your way or return in a different capacity later.