Getting New Blood: Changing Individual Compensation?
Partners admitted that if they want to recruit top sales talent, they might need to recoconsider how they pay those people.
The genius of the agency model is the longtail profit they make through evergreen commissions. But in an age where younger workers change jobs more frequently than ever, that model might not work. The U.S. Bureau of Labor Statistics recently found that wage and salary workers had stayed with their current employers for an average of 4.1 years.
That doesn’t mean agents need to start chasing more upfront compensation from vendors. However, roundtable members suggested that upfront commissions on the individual level might be necessary. Otherwise, why would someone leave a sales job at a vendor that gives them suitable short-term incentives?
