By: Joshua Finley
Tarek Hassan’s Take: Why Commission-Only Salespeople Might Be Costing Your Business More Than You Think
Think commission-only salespeople are the answer to a low-cost sales strategy? Tarek Hassan, founder of Jump Start Journey, challenges that assumption. With 2+ decades in the industry, Tarek has seen how commission-only models can disrupt long-term growth, especially for businesses with complex products and longer sales cycles.
In this article, we discuss Tarek Hassan’s insights on why commission-only sales structures may not be right for every business and how companies can find a compensation model that drives real results.
The Downside of Commission-Only Sales for Long Sales Cycles
Commission-only sales roles appeal to high-turnover industries with fast sales, but they often need more complex B2B sales with longer cycles. Tarek explains that when sales reps don’t see immediate commissions, they jump ship. For companies selling solutions that require relationship-building, commission-only sales can mean high turnover and low sales quality.
Jump Start Journey team members have partnered with leading US companies like Southwest Airlines, Walmart, Qualcomm to name a few, and helps businesses understand that a long-term compensation model leads to a more dedicated, solution-oriented team—a must-have for businesses looking to establish credibility in their market.
How Solution-Oriented Salespeople Drive Value Over Transactions
Not all salespeople are created equal. Tarek stresses the need for solution-oriented sales professionals who focus on the client’s success over time. These individuals don’t just close a sale; they create client value and brand loyalty. Tarek’s approach is simple: find salespeople who care about the client, not just the commission.
Jump Start Journey guides companies in hiring, training, and retaining salespeople who prioritize client satisfaction, leading to better sales outcomes and lasting relationships.
Creating an Effective Compensation Structure
For Tarek, combining a base salary with performance incentives, a hybrid compensation structure offers a balanced approach that aligns with both business goals and employee satisfaction. This model provides sales professionals with a stable income while also motivating them through rewards for achieving specific performance targets. By incorporating both a steady salary and incentives, the structure encourages team members to focus on delivering quality service rather than simply chasing numbers. This approach fosters a more sustainable sales culture and enables teams to work collaboratively toward clients’ long-term objectives, fostering trust and building meaningful relationships. Without the relentless pressure that can come from a commission-only environment, sales teams can better align their efforts with the broader vision and values of the organization.
Jump Start Journey works closely with businesses to design tailored compensation structures that reflect both company objectives and the specific needs of sales teams. By understanding the unique goals of each organization, Jump Start Journey develops compensation plans that align employee motivation with business targets, encouraging a balanced and productive work environment. This thoughtful approach helps support long-term growth, ensuring that compensation strategies evolve alongside the business’s changing needs and market dynamics. Through a focus on adaptability and alignment, Jump Start Journey strives to create compensation plans that benefit both the company and its workforce.
Bottom Line
While commission-only sales roles can be influential in specific industries, Tarek Hassan’s experience shows they may not suit most businesses. By adopting a hybrid compensation model, companies can foster client-centered sales teams and build a stronger, more sustainable foundation for growth. Jump Start Journey offers the insights and support to make it happen.
Published by: Josh Tatunay
