One common question I get from owners is, “How do I get my staff to sell more or have a higher closing rate?” My first question to them is, “Are you paying them commission?” I would say that 50 percent of club owners answer that question as no. What incentive does a staff member have to make a sale or make those extra calls if they are not given commission?
If a staff member is making the same money whether someone joins the club or not, they have no incentive to go that little extra to close that sale or make that extra follow up call. I have had club owners tell me they can’t afford the commission, which is almost like saying peanut butter and jelly don’t belong together on a sandwich. If by paying commission a sales person sells five more memberships per month, then add that up over the course of the year what those five extra sales are really worth per month. If you are not paying commission, you think you are saving money, but in reality you are losing money, because you are losing sales.
Eric Vyborny
Fitness Marketing Contributor
This is totally true. Sales people are more driven if they get commissions since it motivates them to work harder. Otherwise, why would they exert effort to push their efforts further? According to Dr. Darryl Cross (see http://www.depressionatwork.com) employees that lack motivation actually incur losses for the company, and of course we don’t want that. 🙂