Building Sales – Minimising Risk
Surveys show that employed field sales staff typically last just 18 months – and half of them never hit their targets. For any business, especially SMEs watching every penny while trying to grow and reach new customers, that’s an expensive gamble.
Commission-only Sales Agents offer a smarter, lower-risk way to build your sales presence without the heavy fixed costs of a traditional sales team.
To make the choice clearer, we’ve created a simple comparison model. Just enter the numbers that reflect your business, and see instantly how the two options stack up.
Enter the figures that reflect your company’s actual costs and compare the outputs. This will give you a clear, realistic view of how the model performs in practice.
Commission levels vary by sector, but a sensible benchmark is 40–50% of gross margin. For example, if your product delivers a 40% gross margin, this typically equates to 15–20% commission on the net invoice value paid to the Agent.
| 3 Months | Employee | Agent |
|---|---|---|
| Salary | Commission | |
| Recruitment Cost | ||
| Employer Salary Costs (15%) | ||
| Car, Laptop, Phone | ||
| Pension and Benefits | ||
| Total Costs | ||
| Sales | ||
| Sales | ||
| Product/Service Gross Margin | ||
| Gross Profit | ||
| Commission Rate | ||
| Commission Paid | ||
| Profit from Activity | ||
| 1 Year | Employee | Agent |
|---|---|---|
| Salary | Commission | |
| Recruitment Cost | ||
| Employer Salary Costs (15%) | ||
| Car, Laptop, Phone | ||
| Pension and Benefits | ||
| Total Costs | ||
| Sales | ||
| Sales | ||
| Product/Service Gross Margin | ||
| Gross Profit | ||
| Commission Rate | ||
| Commission Paid | ||
| Profit from Activity | ||
The key insight from the calculator is not headline profit — it is risk exposure.
To test this properly, input just 25% of your expected sales volume and review the outcome. This quickly demonstrates how the commission-only model protects cash flow and limits downside risk if performance is below plan.
If you would like to explore how a commission-only sales model could operate within your organisation, click the button below and share your details. We can start a straightforward, no-obligation discussion to assess fit and potential.