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Rick's Question of the Month:
Do you feel that you're more effective when you share commisions with your partner (shared floor), or when commissions remain separate (competitive floor)? Why?

Replies to Rick's Question of the Month

A Taylor (Memphis)
Company: Grant & Co
Title: Sales Manager
I am lloking to change the cuurent format from a lead, assistant sales roll to all lead sales agents with an ups system. Does anyone have any templates that would like to share? I have a new commission schedule but no written guildeline to follow on managing ups.

Thanks,
Amber

Jen (Scottsdale)
Company: 23 Degrees
Title: Sales Associate
I work for a technology company. My biggest problem is with the pricing. Potential customers are constantly picking apart the price. They don't understand the detail and intricacy of software development. I have tried showing case studies, everything except explaining every detail of our code is written to perform a process. I am becoming intimidated because I am not sure how to overcome this problem and really start getting what the project is worth.

Name Withheld (Austin, Texas)
Company: Newmark Homes
In a perfect world, a competitive floor would bring out the best of everyone. Too often, however, it brings out the worst. The assumption is that all would have a high level of honesty and integrity. Sadly, that's not the case.

On a shared floor, with a defined set of duties and responsibilities, customer care is non-negotiable; it must happen. The ultimate goal is a happy homeowner, and a happy salesperson is a nice result, too. Paramount though, is the satisfaction of the buyer. Depending on the personalities of the sales people in a given community, a shared floor would likely achieve better results overall.

At the end of the day, we still must ask, "What's in the best interest of the customer?", not "What's in my best interest?"

Pete Keil (Phoenix, Arizona)
Company: Maracay Homes
Title: Sales Associate
I have sold using a competitive floor for over 15 years, but for the last 5 years have been selling using a shared floor. I feel the competitive floor brings out the worst in partners and creates no motivation for one partner to help the other with a sale.
Working with a shared floor, partners are able to relax more and concentrate on the buyer and their needs.
Salespeople using a shared floor should be self-starters who motivate themselves and can visualize the sale as a joint effort where everybody wins.

Terry H. Bennett (Anthem, Arizona)
Company: Del Webb/ Pulte Homes
Title: Sales Associate
Great Question! In my opinion, a sales associate has a greater chance of becoming a top performer if he or she takes full responsiblity for each and every aspect of the new home sales process. This means being compensated individually for their efforts. However, it is important to have a back-up partner or partners that you can trust and count on when you're away. It's not hard to pre-arrange a commission schedule that's based on the sales they make for you.

Larry Allen (San Antonio, Texas)
Company: Newmark Homes,L.P.
Title: Sales Professional
I believe that a competitive sales floor is much more effective. It helps establish mutual respect and trust between you and your sales partner. This will not only enhance community productivity, it will also assist in achieving individual sales goals.

Jeff Johnson (Phoenix, AZ)
Company: Maracay Homes
Title: Sales Person
When I was a sales person and sales manager for a previous company we had a competitive sales floor. We thought it would make the sales staff more competitive and the true performers would stand out. While this is partly true there were a number of disavantages. Customer service suffered. Disagreements between sales people just to mention a few.

With split commissions these disadvantages don't exist. You can still track who is the top sales producer.

I feel that the advantages of a shared floor far out weigh the competitive floor

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