Commission only &/or equity only is not compensation for Fractional Leaders 📣 I have been seeing a big wave of postings for either: ❌ Fractional CRO/VP of Sales for commission only/equity only as compensation ❌ Commission only contracted sales people There are always exceptions to the rules and I do break the rules for the right times but on the whole... -If you can't afford to hire the role, then you shouldn't be hiring for it. You're looking for the wrong solution. -Being bootstrapped still isn't enough reason to hire commission only sales people if you don't have sales motion they can plug into and sell. -When you need leadership - look for leaders, when you need sellers, look for sellers.
Sweta Govani 🧩 honestly I should have put in the video...you should be working with Happy Paying Customers ™ instead of hiring a commission only anything if you need customers first!
You get what you pay for. In my experience there is a big gap between the quality of a salesperson willing to work for 100% commission versus a salesperson who will drive value immediately and invest in the longer term growth of your business. Hiring a commission only salesperson usually has zero incentive to nurture relationships and deal with customer support issues. Pay your sales people because you need them to do more than just close a deal quickly and move on. They will be building your sales tools, trying new selling efforts and ultimately making sure your customers become early champions of your product.
So you're telling me it's a "no" to car wash vouchers and a Jam of The Month Club subscription as payment??
I’m seeing this a lot with fractional marketing leadership roles as well. I don’t take on equity or pay-for-performance roles and it’s NOT because I’m not “bought in” to the business (I so often see these requests positioned around wanting someone who has “skin in the game”) or because I’m not confident I can deliver results (I don’t take on work where this is the case). Really, there are two big factors that make this type of “compensation” a no-go for me: 1) There are so many factors beyond my control - there could be a problem with inventory, fulfillment, or resource constraints within another team that impacts my ability to deliver. 2) If the client isn’t willing to invest in strategic resources, then they likely also aren’t investing in the tactical resources and tools needed to deliver results. You get what you pay for.
I totally agree about the comp, but I'm curious what you think motivates fractional leaders to ask for equity as part of their package (I've seen several who do ask for that)? I'm assuming it's just because they haven't been fractional long and are still in the f/t corporate mindset, but curious to hear your thoughts!
Can I pay you in Trident gum?
The initial logic for commission only sounds nice, but almost never works
❤️ the SmartZip hoodie
I have seen this as well and wholeheartedly agree!!
Revenue & GTM Leader | 100 Powerful Women in Sales 2024 | Fractional Leader, Advisor, Coach | Telling you what's for dinner 👩🍳
1moMary Walsh guess founders could take a page out of your most recent post toooo