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How I Killed a $40K Commission-Only Disaster in 2 Minutes
Manage episode 521029578 series 3613230
I just saved an MSP owner from six months of pain, tens of thousands of wasted dollars, and zero results—all in about two minutes on a coaching call. He was trying to hire a commission-only sales rep with a $40K "guarantee" and couldn't figure out why he wasn't getting candidates. The problems were massive: he expected them to close deals in 90 days when his sales cycle was 90 days, meaning they'd need three qualified opportunities on day one just to have a chance at hitting quota. Commission-only structures attract less experienced reps, create mercenary behavior, and signal to good salespeople that you either don't have money or aren't willing to invest in the role. In this episode, I break down why this approach fails, the real math behind sales ramp time (hint: it's your sales cycle times two), and what you should actually be hiring for—lead generation, closing, or both. If you're a business owner thinking about hiring sales, this will save you a fortune in mistakes.
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Welcome to Repeatable Revenue, hosted by strategic growth advisor , Ray J. Green.
About Ray:
→ Former Managing Director of National Small & Midsize Business at the U.S. Chamber of Commerce, where he doubled revenue per sale in fundraising, led the first increase in SMB membership, co-built a national Mid-Market sales channel, and more.
→ Former CEO operator for several investor groups where he led turnarounds of recently acquired small businesses.
→ Current founder of MSP Sales Partners, where we currently help IT companies scale sales: www.MSPSalesPartners.com
→ Current Sales & Sales Management Expert in Residence at the world’s largest IT business mastermind.
→ Current Managing Partner of Repeatable Revenue Ventures, where we scale B2B companies we have equity in: www.RayJGreen.com
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