Matt Vaadi explains why one-time commissions backfire: reps get paid and disappear, leaving clients stranded. Trailing commissions align incentives so salespeople stay engaged and support clients long-term, protecting both retention and revenue.
And next up, you know, you want to make sure you understand your sales objectives. Are you trying to push them for volume? Are you focused on profitability? Is client retention a matter? Because those things, again, like if I'm focused on client retention, then I really want to make sure I've got some sort of trailing residual revenue so that they're incentivized to maintain the client. Because if I pay them once, and this happens with one of our biggest competitors in this space, their whole Commission strategy is they pay them once after they process 2 payrolls, and then good luck getting that sales rep on the phone ever again in your life because they are, there's no compensation. There's nothing tied there for them. And that's one of the biggest complaints is this salesperson came out and sold me the world and was here at my office for 20 hours. Then the second we signed up, they were gone. They vanished. And so you have to understand, you know, what do you prioritize as an organization?
