Blogs 

» Sales Commissions - It's not about the money! : 29 Oct 2012
» 3 Tips for Tracking Your Recruitment ROI, New Management Roles : 04 Feb 2013
» 7 Ways to Move Towards a Perfect Team : 19 Feb 2013
» Simple Changes - Big Returns : 26 Feb 2013


Sales Commissions - It's not about the money! : 29 Oct 2012

A few weeks ago I posted an article questioning the merits of sales commissions (Sales commissions - Logical or Just Traditional). Since then I've had a few conversations with Clayton Sinclair, of Advance Fitness Marketing, who felt quite strongly about the value of commissions. I confess to being of the mind set that commissions were simply traditional, more than anything else, I now see the merit in the commission structure - it's not just about people being motivated by money, it's about a method of easily measuring and recognising success in a role.

The following article includes three of the six points taken from a 'sales commission guidelines' document created by Clayton. He has agreed to send the complete document to any Fitness Recruitment reader that requests it (in particular, CGM's, Sales Managers and aspiring Sales Managers).

Enjoy...



Research has indicated that paying commissions may not produce the benefit that we might expect.


The results indicate that, for simple/repetitious activity, a reward is likely to be helpful. If however, the process is complicated or requires creativity or problem solving then the use of financial rewards may not help and may in fact be harmful.

At Advance, about 30% of our payroll has been commission based remuneration, so we've had reason to give this area a great deal of thought.

Whilst there is no doubt that the sale of fitness services does require some mental effort (understanding the prospects needs/wants and basing your presentation on this information), the structure of a fitness sales presentation is generally consistent enough that commissions are likely to be beneficial. When it comes to “follow up” or lead generation, it is the consistent activity that is a strong contributor to success. As such, an incentive that helps a sales person to decide to pick up the phone and make some calls should surely help to produce a favourable result.

However, commission alone will rarely produce the desired result in any business. Commissions should be viewed as a catalyst for review, recognition and responsibilities.

We recommend the following guidelines when implementing a bonus and commission plan to ensure that it offers the maximum benefit for all concerned:

Regular and consistent recognition
While it is important to have sales staff conscious of their targets and the associated commissions, the financial incentive is only part of the equation. Most people appreciate recognition for good performance. A commission plan, combined with weekly sales meetings, helps to create a framework for regular and consistent performance feedback for staff. For some staff, the genuine recognition of good performance may be equally or even more motivating than the financial incentives.

Bonus what you want to see
“Spot” Bonuses can be used to draw attention to a new initiative. For example, if you want to see Group Fitness attendance increase by 20% in the month ? you could place a specific bonus for the Group Fitness Coordinator on that outcome. Creating the bonus is not always just about the dollars in the team members pocket ? it also says “this area of performance is important to the business and your role”.

Use multiple levels of bonuses for greatest effect
It is usually helpful to create immediate and short term (weekly) targets for sales staff. For sales management or club management staff, I would recommend immediate, short and medium term (monthly/quarterly) targets and bonuses. For sales people my preference is a smaller bonus for each sale (without threshold) and then a weekly bonus for hitting the sales target that matches the business needs. I like this balance as there is an incentive to follow up every lead. Additionally, the “cream” for the sale person (hitting their weekly target) is also the “cream” for the business. It is this last point that I like about commission plans in general, and that is “sharing the success” - creating a sense of, if we win as a team, we also benefit as individuals.

Commission structures are not a 'one size fits all' scenario. They should take into account business goals and define clear responsibilities, accountabilities and targets. One thing is very clear, larger commissions will not necessarily lead to proportionality larger sales results. Better management leads to better performance, and a well thought our commission structure is a better manager's greatest tool.

As mentioned, these are only three of six important considerations when creating your commission structure. Email Clayton for the complete article.

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3 Tips for Tracking Your Recruitment ROI, New Management Roles : 04 Feb 2013

Getting smarter about recruitment is something we take very seriously. We don't think anything should be taken for granted. To this end we have created a quick survey to learn some basics about what's happening from the employer's end. Questions include 'how long it took to fill a role', 'the number of interviews required' and 'how easy was the process'. There is nothing to identify individual employers. In all, the survey should take less than 60 seconds. Once we have a reasonable response (say, 20 or so) we'll share the results with all. The link will be sent to all clients at some stage over the coming months. If you've recently advertised and would like to have your say, please email me for the link.

If you'd like to learn a few tips for tracking the value of your recruitment processes, please read on...

Investment in recruiting services, even basic job advertising can be significant and time-consuming and, in the absence of hard data, many employers revert to an 'educated guess' on what recruitment might cost for the year. Following are three key measures you can use to build up a clearer picture of what it takes to staff your facility:

1. Time to hire

Time to hire is the total time it takes to hire someone for a job; from the time you began actively trying to fill a role to the time they sign the contract. A longer time results in a loss of productivity elsewhere and higher costs (known as opportunity costs). Thus the longer the time to recruit, the lower the return on your recruiting investment.

TIP: Actively sourcing candidates for potential roles, ahead of the need, gives you much greater opportunity to connect with the best person for the role when required. For example, when a great candidate presents themselves, it may provide the impetus to fill/replace a role that was otherwise being deferred due to the enormity of the task. The time to hire becomes minimal, you are now in control and increasing the return on your recruiting investments (both time and money). The easiest way to connect with industry professionals outside of job advertising is with a subscription to HealthyPeople.

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Sales and Marketing Manager role with Genesis Melton
Use your experience & passionate to lead our sales
team to success! This is an excellent opportunity to
become 2IC, developing into a Club Manager Role.
[more]

 

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2. Quality of hire

Quality of hire focuses on your perception of how satisfied you are with the selection of candidates to choose from and the quality of the final candidate hired. Despite its importance, quality is probably the trickiest metric to measure as it is based on perception. Thus one person's idea of a "quality" hire may be different to someone else's. However, getting quality right is fundamental as hiring the right candidate delivers bottom line profitability and makes engaging and retaining a lot easier, and thus improves ROI.

One solid measure of suitability is whether you choose to hang on to this person beyond the trial period. Someone considered 'low quality' will surely not be kept on. You might think that someone has potential but needs work, or you might be thrilled with the hiring result.

TIP: The information contained in a job ad will heavily influence the nature of those applying. The short description in the search results is as important at screening people out as much as it is inviting the right person in. Take your best employee and aim your job ad at attracting them specifically. Remember, you can train for skill, you can't train for attitude. Becky and I are always available to help put together the best possible job ad. Both in the beginning and to tweak throughout the month (if required).

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Sales Manager needed at Genesis Warners Bay
Currently working as a membership consultant &
ready to take the next step in your fitness career?
We need a Superstar Sales Manager to contribute to
the growth of our club. [more]

 

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3. Cost per hire

This refers to the total cost relating to securing a hire. Such costs can include advertising of a role, resume filtering, subscription costs, candidate screening & matching, interview time and hiring administration. Obviously, the larger the cost-per-hire, the lower the return on your recruiting investment.

TIP: Are you able to identify any hidden or duplicate costs in recruitment? Consider the technology you're using and assess whether it is increasing the exposure and reach of your roles? How long are you really spending on the recruitment process? Use a time tracker to give you a more accurate view (like SlimTimer - I just found this, it's great and FREE).

Better systems and good use of technology can significantly reduce the pain and cost of recruitment. Start creating a record of your recruiting habits today. Track the time you spend each week on finding the best staff, any costs incurred and how you rate the quality of those employed. This process alone will give you a greater sense of power over the whole process.

Have a fantastic and profitable week.

Dennis Hosking
Managing Director - HealthyPeople

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7 Ways to Move Towards a Perfect Team : 19 Feb 2013

The dynamic between employers and jobseekers has changed dramatically in recent history, especially in relation to Personal Training, which is now more often a collaboration of independent operators rather than employees. As a result, the way in which we attract and retain these people needs to adapt.

Today's article aims to provide more direction in this area...



We can no longer afford to manage the recruitment and retention of staff the way we always have in the past.


As Walt Disney said “You can dream, create, design and build the most wonderful place in the  world… but it requires people to make the dream a reality”  

Have your team not only understand where you're going with your business but believe in what you're doing. Give  them a sense of purpose for turning up to work every day. Everyone wants to be part of something great! Share your vision!

Everyone needs clear boundaries and expectations. If you don't have a clear set of rules or expectations then now is a great time to start.

Give your team plenty of information about your expectations and what they can expect from you in return. This way everybody knows exactly where they stand and there will be no surprises. If you don‘t make your values really clear, then your team will bring their own, and you may not like those values!

So what are your values? What are your rules? What is important to you in your business?

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Fitness Division Coordinator - Genesis Kelmscott
We're on the hunt for the best of the best to take on
the role of Fitness Division Coordinator. Earn a salary
&still have the ability to train people and receive
monthly bonuses!! [more]

 

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Lift your expectations!  Business owners and managers can end up accepting mediocrity from their team simply because they think their own standards are too high (and generally unachievable). If you have high standards and want to achieve them, you can attract people who love those high standards, which is better than battling to lift a team of mediocre people.

Keep the great people and don‘t accept mediocrity! The mediocre people may lift their game and astound you... or they won‘t like the ‘pressure’ of high standards and leave. Either way you win.

7 ways to move towards your perfect team;

  • Communicate - tell them ‘what‘s in it for them’, rather than what‘s in it for you.
  • Educate ? Train them how to do a great job and why each step is so important.
  • Care about them - show them you remember little things - just like our clients love too.
  • Let them find answers - life's boring when someone continually comes up with the answers for you.
  • Have fun.
  • Let them make small mistakes - it’s the best way to learn.

Let them experience success - with you at their side, coaching and supporting them every step of the way.

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Membership Sales Manager - Genesis Casuarina
You must have a proven track record of personal
success. You'll be fiercely competitive, creative,
inspiring, energetic & motivational with a strong
leadership ability. [more]


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Your team will mirror you. So walk purposefully into your facility with a smile, holding yourself tall and proud like you‘re on a mission. Watch your team when you do this - what happens to them? The level will lift - energy levels will rise - mood will improve - production will increase! Unfortunately the opposite is also true so be consistent with this!  

If at first you don‘t feel confident doing this, ‘Fake it till you make it’ - it will soon become automatic!

Have a fantastic and profitable week.

Dennis Hosking
Managing Director - HealthyPeople

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Simple Changes - Big Returns : 26 Feb 2013

I am a huge believer in the power of 'The Lizard Brain', or 'System 1', or 'The Unconscious Mind' - whatever you want to call it. Essentially, we are guided by thoughts we are not conscious of, and in turn, we can influence the nature of these unconscious thoughts. With this in mind, following are a few simple ways to influence your outlook on the day...

 

Change is a pretty daunting prospect, but what if a few simple changes to your daily routine could have a significant impact on your life and career?

 

If you've got an open mind with an interest in exploring new avenues for professional and personal growth, why not attempt a few (if not all) of the following ideas?

Start each day with expectation.
If there's any big truth about life, it's that it usually lives up to (or down to) your expectations. Therefore, when you rise from bed, make your first thought: "something wonderful is going to happen today." The funny thing is, you'll probably be right.

Take time to plan and prioritise.
The most common source of stress is the perception that you've got too much work to do.  Rather than obsess about it, pick one thing that, if you get it done today, will move you closer to your highest goal and purpose in life. Then do that first.

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Membership Sales Manager - Genesis Casuarina
You must have a proven track record of personal
success. You'll be fiercely competitive, creative,
inspiring, energetic & motivational with a strong
leadership ability. [more]

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Give a gift to everyone you meet.
I'm not talking about a formal, wrapped-up present. Your gift can be your smile, a word of thanks or encouragement, a gesture of politeness, even a friendly nod. And never pass beggars without leaving them something. Peace of mind is worth the spare change.

Deflect partisan conversations.
Arguments about politics and religion never have a "right" answer but they definitely get people all riled up over things they can't control. When such topics surface, bow out by saying something like: "Thinking about that stuff makes my head hurt."

Assume people have good intentions.
Since you can't read minds, you don't really know the "why" behind the "what" that people do. Imputing evil motives to other people's weird behaviors adds extra misery to life, while assuming good intentions leaves you open to reconciliation.

Eat high quality food (slowly).
Sometimes we can't avoid scarfing something quick to keep us up and running. Even so, at least once a day try to eat something really delicious, like a small chunk of fine cheese or an imported chocolate. Focus on it; taste it; savor it. I think the idea here is reflected in this article, Pay Too Much, by Allen Tucker.

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Sales Manager needed at Genesis Warners Bay
Currently working as a membership consultant &
ready to take the next step in your fitness career?
We need a Superstar Sales Manager to contribute
to the growth of our club. [more]

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Let go of your results.

The big enemy of happiness is worry, which comes from focusing on events that are outside your control. Once you've taken action, there's usually nothing more you can do. Focus on the job at hand rather than some weird fantasy of what might happen. (Check out Stephen Covey's 'circle of influence and circle of concern' in 'The 7 Habits of Highly Effective People')

Turn off "background" TV.
Many households leave their TVs on as "background noise" while they're doing other things. The entire point of broadcast TV is to make you dissatisfied with your life so that you'll buy more stuff. Why subliminally program yourself to be a mindless consumer? When you do sit down to watch a show, make the most of recorded TV. Skip through the ads, again avoiding unnecessary subliminal programming.

End each day with gratitude.
Just before you go to bed, write down at least one wonderful thing that happened. It might be something as small as a making a child laugh or something as huge as a million dollar deal. Whatever it is, be grateful for that day because it will never come again.

If you've made it this far, there's a part of you interested in trying something new. Take a few items from this list and and make them happen for the next 21 days. There's nothing to lose and you may gain more than you expected.

"Man's mind, once stretched by a new idea, never regains its original dimensions." - Oliver Wendell Holmes

Have a fantastic and profitable week.

Dennis Hosking
Managing Director - HealthyPeople
Thank you to Geoffrey James for the inspiration

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