Manager wants to eliminate commissions on repeat sales. Agree or disagree?

Yesterday at a networking event a sales rep told me that her manager was planning to “strip her commission from all repeat sales”; thus, encouraging her to ignore current customers and only target net new prospects. The justification for this action is that the company “has too much repeat business”.

Seriously? Is it possible for anyone to have too much repeat business?

If the management team goes through with this proposed change they will reduce repeat business, maybe bring in enough new business to make sales even for the year but will have spent much more time attracting and closing that new business. In other words, their actions will dramatically reduce profits.

I think it’s a stupid idea but I am be curious about your opinion!

Dedicated to increasing your sales,




4 responses to “Manager wants to eliminate commissions on repeat sales. Agree or disagree?

  1. Good heavens! What could possibly be the advantage of discarding repeat customers! Happy customers are known for giving us new business through referrals. And this costs far less than any marketing campaign and carries much more credibility.

  2. […] Sell More, Work Less and Make More Money by Colleen Francis » Blog … […]

  3. most companies would be very happy with “too much” repeat business – if there is such a thing

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