Dan Lutchansky CPA
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“Life itself is a matter of salesmanship”

Thomas J. Watson

Small Business Taxes and Accounting Pie Chart


Making Salespie chart




Some business owners come to a point where they hire salespeople to generate new business. In fact, some even consider it brilliant to hire salespeople on a commission-only basis so there’s no financial risk. Actually, it is an unbeatable business model if you can make it work.

There are businesses that are very successful with this model. As a matter of fact, not only do these companies pay on a commission-only basis, they also get their salespeople to pay for all of their selling expenses upfront including training, licensing, samples, office supplies and equipment. Real estate brokers, insurance agencies, multi-level marketing companies and auto dealerships are all examples of businesses that function like this.


The ability to make money on these kinds of salespeople depends a lot on if you already possess the ability to manage and motivate commission-only employees, and that’s pretty hard to do and you usually will have to deal with a lot of turnover before you find salespeople that stick.

Most find it much easier to get salespeople that will stay and grow with you and your business by guaranteeing them a base salary or hourly wage. That provides the incentive for salespeople to learn and grow and try new techniques until they’re successful selling your product, as long as the draw or base salary isn’t so much money that they lose all incentive to sell.

However, you still need to manage your salespeople to get them to perform as needed. They will still need to be cajoled, encouraged, motivated, and on occasion disciplined in order to turn into the top-notch performers you envision.


For example, prospecting is the lifeblood of any successful sales effort. It needs to take place consistently so that prospects are always at the beginning, middle and end of the sales cycle. The first tool that will help you effectively manage your sales team is using a Daily Sales Report. We can design that daily report to ensure it provides you the information needed to manage your sales team.

Learning to manage your team’s sales efforts is a key skill needed to build a successful business. We can help you formulate your compensation plan and design your sales management system to support your growth plan.

Would you like to discuss your ideas for growing your business?

The best way to get started is with a complimentary business consultation, where we will answer your questions, assess your situation and recommend a course of action. We can be reached at (408) 378-9500 or by completing the form at Contact Us.