Understanding Commission Only Setters and Closers
In the world of sales, two roles are becoming increasingly popular: commission only setters and closers. These professionals specialize in different stages of the sales process but share one common trait—they are compensated only when results are achieved. A setter’s main role is to reach out to prospects, qualify them, and book calls or appointments for a closer. The closer, on the other hand, takes over once the appointment is set, working to convert the lead into a paying customer. This commission-only structure ensures businesses are not burdened by large payrolls for underperforming staff. Unlike traditional salaried salespeople, these professionals thrive on performance and accountability. Their income is tied directly to their ability to produce tangible results, making them naturally motivated to succeed. This model has quickly gained traction among startups and established businesses alike.
Why Businesses Turn to Commission Only Setters and Closers
One of the main reasons companies choose commission only setters and closers is cost efficiency. Since payment is made only after sales are closed, businesses don’t risk losing money on employees who aren’t generating results. This model reduces financial strain, especially for new ventures that need to maximize every dollar. Another reason is scalability. Entrepreneurs can grow their teams quickly without worrying about fixed payroll costs, which allows them to test markets or expand into new ones with minimal financial risk. For many, this is the perfect way to build a strong sales pipeline while keeping overhead lean. Moreover, businesses gain access to driven professionals who are highly motivated to perform at their peak. The commission-based structure attracts individuals who are confident in their abilities and thrive in performance-driven environments. This creates a win-win scenario where companies gain revenue and sales professionals earn based on their achievements.
Roles and Responsibilities of Setters vs. Closers
Although both roles contribute to sales, the responsibilities of setters and closers differ significantly. Setters are responsible for prospecting, generating interest, and qualifying leads. Their role is to build rapport with potential clients and ensure they are genuinely interested before passing them to a closer. A well-trained setter filters out unqualified leads, saving time and resources for the closer. Closers then take over and handle the high-stakes part of the process. They build trust, address objections, negotiate terms, and finalize deals. This separation of duties allows each role to focus on their strengths and maintain efficiency throughout the sales cycle. When setters and closers work in sync, the business experiences smoother transitions and higher conversion rates. The relationship between the two roles is crucial, as the setter creates the opportunity while the closer capitalizes on it. This structured teamwork is why many businesses prefer this model over relying on one person to handle the entire sales journey.
Key Benefits of Hiring Commission Only Setters and Closers
The benefits of using commission only setters and closers go far beyond saving money. For one, businesses can dramatically increase revenue without the risk of paying salaries before results are achieved. This makes it an ideal setup for small businesses and startups that need to scale quickly without overspending. Another advantage is the flexibility it provides. Entrepreneurs can build teams that expand or contract depending on demand, making it easier to adjust to market fluctuations. Additionally, these professionals bring specialized skills to the table. Setters are skilled at lead generation and engagement, while closers excel at sealing deals. This division of expertise ensures a more efficient and effective process. Beyond efficiency, business owners also enjoy peace of mind knowing that they are rewarding only measurable performance. This risk-reduction factor makes the model especially appealing to industries with high-ticket offers, where each sale carries significant value.
Common Industries Using Commission Only Setters and Closers
The use of commission only setters and closers has spread across many industries. In coaching and consulting, where services often come with premium price tags, having a dedicated team of setters and closers ensures a steady flow of new clients. Digital marketing agencies also rely on this model, as it helps them maintain consistent client acquisition without heavy payroll costs. In real estate, setters book appointments with potential buyers or sellers while closers handle property negotiations and contracts. High-ticket e-commerce and online programs are another area where this model is thriving, particularly for businesses selling luxury goods, courses, or software solutions. Even professional services such as financial advising and insurance sales are turning to this structure because it aligns costs with performance. These industries benefit from the model because it reduces wasted effort while maximizing the impact of sales efforts. Each of these fields values the efficiency and accountability that commission-only structures provide.
Challenges and Considerations to Keep in Mind
While commission only setters and closers offer significant benefits, there are challenges that businesses must consider. One issue is ensuring that the quality of interactions remains high. Since setters and closers are motivated by commission, there may be a temptation to prioritize volume over genuine client relationships. Another challenge lies in creating fair and motivating commission structures. If rates are too low, attracting skilled professionals becomes difficult; if they are too high, business margins may suffer. Additionally, trust and alignment are crucial. A lack of clear communication between setters, closers, and business owners can lead to frustration and missed opportunities. Businesses must also be prepared to invest in proper training and resources. While commission-only roles reduce upfront costs, the absence of adequate support can diminish performance. Finally, companies need systems in place to track performance and ensure accountability. Addressing these challenges thoughtfully makes the commission-only model sustainable in the long run.
How to Build a High-Performing Commission Only Sales Team
Creating a strong commission-only team requires careful planning and execution. The first step is recruiting individuals who are naturally self-motivated and confident in their ability to sell. Businesses should look for candidates with proven experience in sales, particularly in high-ticket offers where closing skills are crucial. Training is another vital component. Even skilled professionals benefit from ongoing coaching that aligns them with the company’s products and brand values. Using technology such as CRM systems streamlines communication between setters and closers, ensuring that no leads fall through the cracks. It’s also important to set clear performance metrics and incentives. Regularly reviewing results and offering recognition fosters a healthy, competitive culture. Business owners should also build trust and create an environment where setters and closers feel valued. When these factors come together, companies can establish a high-performing sales team that consistently delivers results while remaining cost-effective.
The Future of Commission Only Sales Models
The demand for commission only setters and closers shows no signs of slowing down. With the rise of remote work, businesses now have access to a global talent pool of skilled professionals ready to work on performance-driven terms. Technology is also shaping the future of this model. AI tools are helping setters identify and pre-qualify leads, while automation assists closers in managing follow-ups and proposals. These innovations make commission-only teams more efficient and effective than ever before. Another trend is the growing adoption of this model among online education and digital service providers, industries that thrive on scalability and flexibility. As more entrepreneurs look for ways to cut costs without sacrificing growth, the commission-only model will become an even stronger part of the business landscape. Ultimately, the future points to a continued evolution where performance-driven sales professionals play an essential role in driving business success worldwide.
FAQ
What is the difference between commission only setters and closers?
Setters focus on finding and qualifying leads, while closers handle the actual sales conversations and secure deals. Both roles are essential for maximizing conversions.
How much commission do setters and closers typically earn?
Earnings vary depending on the industry, offer, and commission structure. Setters may earn a percentage per qualified lead or appointment, while closers usually take a larger share of each successful sale.
Is a commission-only model sustainable for startups?
Yes, it is especially effective for startups because it minimizes financial risk. Since payment is based on performance, companies can grow without heavy payroll expenses.
Can commission-only sales teams work remotely?
Absolutely. Many setters and closers work remotely, leveraging online tools and CRMs to manage leads and close deals efficiently from anywhere.
How do I know if my business is ready to hire setters and closers?
If your business has a proven product or service and you’re ready to scale sales without adding fixed costs, hiring commission-only professionals can be an excellent next step.