How To Go 100% Commission...Safely

Most sales reps have a "draw" that shields them from the consequences of not making quota. That security blanket comes at a high price, though, because the employer is taking on some of the risk of a sales reps' (hopefully temporary) inability to sell. Because risk and rewards are always proportionate, making big money in sales often means working 100 percent commission. Here's are eight questions to ask, before you take the leap:

1. Do you have the right personality? If you're going to be successful at this, you need a certain kind of personality: a self-directed, self-starter who isn't afraid of failure and can perform under high levels of stress. There's probably some truth to the old analogy of the 100 percent commission sales pro being a shark. They hunt alone and know that they need to keep moving in order to keep eating.
2. Does your employer have world-class training? You don't want to spend three months eating dog food while you figure out your new employer's products and sales process. You need to hit the ground running, so you should expect top-notch training, provided the moment you're hired.
3. Can your manager coach you when needed? The next best thing to having experience is having access to somebody with experience. You want t manager who can tell you what you're doing wrong and encourage what you're doing right. Ask yourself: does this manager have what it takes to help me to be successful? If not, look elsewhere.
4. Will your employer give you useful info? Needless to say, the most useful info is a list of QUALIFIED leads. Beyond that, they should be able to provide you with competitive research, sales tools, USEFUL presentations, unique sales propositions, and anything else that can help you close a deal.
5. Does your employer have a clearly defined sales process? When your daily bread is at risk, you don't want to always be winging it. A clearly-defined, easily-understood sales process, with easily-measurable metrics, can help you understand exactly what you need to do in order to be successful. For example, if you're not making quota, you need to know if it's because you're not making enough prospect calls a day, or if it's because you're not closing enough existing opportunities.
6. Will you have your own territory? The downside of being a "shark" is that you have to swim with other sharks. And sharks aren't afraid of stealing from other sharks. Unless you want to constantly fighting other sales pros for the same business, you should expect to have an exclusive region or industry segment where only you are allowed to sell.
7. Will they pay your commissions promptly? You'd be amazed how many firms let the bean counters rule the roost and wait weeks, even months, before paying the people who are bringing in the business. Insane! So ask around? Do these guys pay on time? Here's a rule of thumb: expect to be paid while you're still excited about making the sale. That way you'll be motivated to make the next sale, rather than grumbling about the check that's in the mail.
8. Do they have a generous bonus plan? If you do a superlative job (like taking the extra time to sell a product that's difficult to sell, rather than just cherry picking what's easy), you have every reason to expect that you'll get some extra rewards. Look for a bonus plan that simple and consistent, so you know exactly what to do in order to earn the big prize.

The above is based largely upon conversations and interviews with Robert Carr, CEO at Heartland Payment Systems, Inc. the nation's sixth largest provider of credit and debit card, payroll and related processing services. When his company (where Sales is 100 percent commission) went public in 2005, 63 employees---most of them sales reps---became instant millionaires. I'll tell you more about Carr in a future post.