Why Businesses Are Turning to Commission Only Models
The way businesses approach sales teams has evolved rapidly, especially in industries that rely heavily on high-ticket products and services. Traditional salaried sales roles come with financial risk for employers because they must pay staff regardless of performance. Commission only setters and closers eliminate that risk by tying compensation directly to results. This approach not only aligns incentives between company and salesperson but also ensures that only the most driven individuals thrive in the role. Many startups and small businesses prefer this model because it helps them scale faster without overextending budgets. By adopting commission only sales structures, companies can test strategies, adjust sales processes, and grow revenues with greater flexibility. As competition in the marketplace increases, performance-based pay is becoming less of an alternative and more of a necessity.
What Are Commission Only Setters and Closers?
To understand how this model works, it’s important to clarify the distinct roles of setters and closers. A setter’s job is to qualify potential clients, book appointments, and create opportunities for revenue generation. Closers then step in to conduct sales calls and secure deals, making them responsible for converting leads into paying customers. Commission only setters and closers work together as a synchronized team that ensures the sales pipeline moves efficiently. This structure is particularly effective in high-ticket sales environments, such as coaching, consulting, and software. While setters focus on lead nurturing, closers apply advanced sales strategies to finalize transactions. Without both roles working hand in hand, businesses may struggle to maintain consistency in lead quality and conversion rates.
The Role of Setters in Building a Pipeline
Commission only setters serve as the first line of communication with potential clients. They qualify prospects by determining their interest level, financial capacity, and readiness to buy. By filtering out unqualified leads, setters save time for closers, allowing them to focus solely on high-value opportunities. Their role often includes cold outreach, following up with inbound leads, and scheduling appointments on the calendar of a closer. Setters must possess strong communication skills, resilience, and the ability to handle objections with professionalism. They also rely on tools like customer relationship management systems to keep track of interactions. Without skilled setters, closers would waste valuable time chasing leads that don’t convert, making this role indispensable for revenue growth.
The Role of Closers in Driving Conversions
Once a setter has done their part, closers step in to carry the deal across the finish line. A closer’s primary responsibility is to turn qualified appointments into paying customers through persuasive communication and negotiation skills. They use structured sales frameworks, such as consultative selling or solution-based approaches, to build trust and demonstrate value. Commission only closers thrive in environments where results directly impact earnings, as this creates a high level of motivation. Their success requires deep product knowledge, confidence, and the ability to handle objections while maintaining rapport with prospects. In high-ticket industries, the closer’s role can make or break the success of a sales campaign. By focusing solely on closing deals, these professionals drive the final step of revenue generation, ensuring businesses grow sustainably.
Advantages of Hiring Commission Only Setters and Closers
Businesses that adopt this model enjoy multiple benefits that extend beyond financial savings. The most obvious advantage is eliminating the burden of fixed salaries, which frees up resources for marketing, product development, and scaling operations. Commission only setters and closers are inherently motivated since their income depends entirely on performance. This results in higher productivity and accountability compared to traditional sales teams. Additionally, businesses gain the flexibility to test different sales approaches without worrying about sunk costs. Startups and small companies especially benefit, as they can hire talent without the pressure of paying upfront salaries. Ultimately, this structure ensures both company and salesperson share the same goal: closing more deals and generating revenue.
Potential Challenges and How to Overcome Them
While commission only sales teams can be highly effective, they are not without challenges. One common concern is consistency in performance, as motivation may fluctuate depending on the individual. To address this, businesses should invest in onboarding, mentorship, and structured training programs. Another challenge is building loyalty, as commission only setters and closers may jump from one opportunity to another if they don’t feel valued. Companies can combat this by creating supportive work cultures, offering tiered commission structures, and providing incentives for long-term success. Preventing burnout is another factor, as sales can be emotionally demanding. Regular check-ins, team recognition, and clear communication about expectations help reduce turnover. By anticipating these issues, businesses can create a strong, sustainable commission only team that thrives over the long run.
How to Build a Commission Only Sales Team
Creating a high-performing sales team requires intentional planning and structure. The first step is establishing a commission structure that motivates both setters and closers fairly. Setters often receive a smaller commission per appointment, while closers earn a higher percentage per closed deal. Businesses must also invest in tools such as CRM platforms, scheduling software, and lead tracking systems to maximize efficiency. Recruiting the right talent is critical, so companies should look for candidates who are self-motivated, resilient, and results-driven. Training plays a key role in ensuring everyone understands the company’s offers, sales process, and target audience. By creating a transparent system with measurable goals, businesses can scale their teams while maintaining alignment and performance.
Industries That Benefit Most from Commission Only Setters and Closers
Not every industry is equally suited to this sales model, but many thrive under it. Coaching and consulting companies benefit greatly, as their high-ticket offers depend on personal trust and persuasive selling. Real estate and mortgage industries also rely on commission-based structures, making them a natural fit for setters and closers. SaaS and technology companies selling premium software packages often utilize commission only setters and closers to maximize conversions. Health, wellness, and online education programs use this approach because it allows them to focus on scaling while minimizing payroll risks. Any business selling high-value services or products with longer sales cycles can benefit from this model. By leveraging the power of commission only sales teams, these industries achieve faster scalability without the overhead costs of traditional sales staff.
Scaling with Commission Only Setters and Closers
One of the most attractive benefits of this sales structure is the ability to scale strategically. Small businesses often begin with a single setter and closer before expanding into multiple teams as revenue grows. By outsourcing or hiring commission only reps, companies can test markets before investing heavily. This scalability allows organizations to expand into new regions, industries, or demographics with minimal upfront risk. As performance increases, business owners can reward top performers with higher commissions or bonuses to retain them. Over time, scaling with commission only setters and closers leads to a self-sustaining sales system that drives continuous growth. For entrepreneurs and founders, this offers an agile way to compete with larger competitors without overwhelming payroll expenses.
Common Misconceptions About Commission Only Sales Roles
Despite its advantages, misconceptions about this model persist. One common myth is that commission only structures are only for struggling businesses, when in reality, many successful organizations rely on them. Another misconception is that salespeople working on commission lack professionalism. In fact, commission only setters and closers often develop stronger skills because they must consistently deliver results to earn. Some also assume these roles are short-term fixes, yet many companies build long-term sales success with commission only teams. Another misconception is that the model is exploitative, but when structured fairly, it offers unlimited earning potential for motivated professionals. These misunderstandings often prevent businesses from exploring a sales structure that could significantly improve growth. By dispelling these myths, companies can make informed decisions about building performance-based sales teams.
Frequently Asked Questions (FAQ)
How do commission only setters and closers get paid?
They are compensated strictly based on performance. Setters usually earn a smaller commission per booked and qualified appointment, while closers earn a percentage of each deal closed.
What’s the typical commission rate for setters vs. closers?
Rates vary depending on the industry, product value, and company structure. Setters may receive between $50 to $200 per appointment, while closers often earn 10–20% of the deal’s value.
Do commission only salespeople work full-time or part-time?
Both arrangements are possible. Some work full-time with dedicated companies, while others manage multiple projects on a part-time or freelance basis.
How do I know if a commission only model is right for my business?
If your business offers high-ticket products or services, needs to scale quickly, and wants to minimize payroll risks, this model is likely a strong fit.
Where can I find qualified commission only setters and closers?
Many businesses find them through specialized recruiting agencies, online job boards, or sales-focused communities and networks.
