Why Businesses Turn to Commission Only Setters and Closers
In today’s competitive sales environment, businesses are constantly searching for ways to increase revenue without taking on unnecessary financial risk. Commission only setters and closers have become a solution that allows companies to expand their sales force while keeping overhead low. Since these roles are performance-driven, businesses only pay when results are delivered. This model reduces wasted spending on underperforming sales staff and directs resources toward revenue generation. It also attracts motivated individuals who thrive on earning potential rather than fixed salaries. For many businesses, this creates a win-win: lower costs combined with higher revenue opportunities. Companies that adopt commission-only roles are often able to scale faster and more efficiently than those relying solely on salaried teams.
Understanding the Role of Commission Only Setters
Setters play a critical role at the start of the sales funnel. Their main responsibility is to generate leads, qualify them, and schedule appointments for closers. This ensures that sales professionals who handle final deals spend their time only with serious prospects. A setter’s daily tasks involve prospecting, outreach, cold calls, follow-ups, and engaging potential clients through email or social media. To succeed, they must be skilled in communication, resilient in the face of rejection, and highly organized. They are often the first point of contact, meaning they set the tone for the client’s perception of the business. Without effective setters, many closers would waste time chasing unqualified leads. By keeping the pipeline full, setters ensure sales momentum never slows down. Businesses that overlook the importance of setters often struggle to scale consistently.
Understanding the Role of Commission Only Closers
Closers take over once setters have done their job. They focus on converting qualified leads into paying customers, making them the revenue-driving force of the sales team. Unlike setters, who focus on appointments, closers must be strong in persuasion, negotiation, and objection handling. They also build rapport with potential clients, identify pain points, and present solutions in a compelling way. A closer must be skilled at listening as much as selling, because understanding the client’s true needs is what enables them to finalize deals. They must also maintain professionalism and empathy to build trust quickly. The closer’s ability to turn conversations into contracts directly impacts the business’s bottom line. For companies, investing in skilled closers ensures that opportunities created by setters do not go to waste. Together, setters and closers create a seamless path from first contact to closed deal.
How Setters and Closers Work Together in a Commission-Only Structure
The relationship between setters and closers is one of collaboration rather than competition. Setters ensure that prospects are interested and qualified, while closers step in to finish the process. When both roles are aligned, businesses enjoy a smooth transition between lead generation and final conversion. The handoff process often includes sharing detailed notes about the prospect, highlighting pain points, and outlining any concerns expressed during early conversations. Closers rely heavily on this information to customize their approach and increase the chances of success. This structure prevents wasted time and ensures that every lead has been nurtured before entering the closing phase. Collaboration also builds accountability within the team, as both roles are measured by performance. The result is a well-oiled system where setters keep the pipeline flowing and closers focus solely on driving revenue.
Benefits of Commission Only Setters and Closers for Businesses
Adopting a commission-only sales structure offers significant advantages for companies looking to scale. The most obvious benefit is cost-effectiveness, as businesses only pay for performance. This reduces financial risk while encouraging sales professionals to maximize their efforts. Since income depends on results, both setters and closers remain highly motivated to perform at their best. Another advantage is the ability to build specialized roles. Setters focus on generating interest, while closers focus on converting, which prevents burnout and increases productivity. Businesses also benefit from scalability, as they can grow their sales force without dramatically increasing payroll costs.
Key benefits include:
- Lower financial risk by eliminating fixed salaries
- Higher motivation among sales professionals
- A scalable structure that grows with the business
- More efficient use of time and talent
- Clear performance metrics that drive accountability
By combining these benefits, companies gain an agile and results-driven sales model that adapts to changing market conditions.
Challenges and Considerations in Hiring Commission Only Setters and Closers
While the commission-only model offers many advantages, it also comes with challenges that businesses must address. One major concern is consistency—since income depends on performance, some professionals may struggle during slow seasons. Businesses must ensure they attract driven individuals who can handle fluctuating income. Another challenge is quality control. Without the right onboarding and monitoring, businesses risk hiring individuals who overpromise and underdeliver. There is also the question of loyalty, as commission-only professionals may pursue multiple opportunities at once. Companies need to balance flexibility with accountability to avoid losing talent. Additionally, creating the right commission structure is critical. If payouts are too low, the role may not attract top performers. If too high, businesses may struggle with profitability. These considerations highlight the importance of thoughtful planning before implementing commission-only sales teams.
Best Practices for Recruiting and Managing Commission Only Setters and Closers
To build a successful commission-only team, businesses need clear strategies for recruitment and management. First, it’s essential to know where to find talent. Online platforms, specialized sales communities, and professional networks are excellent places to connect with qualified candidates. Once hired, proper onboarding is crucial to align expectations and provide the tools necessary for success. Training in company values, product knowledge, and sales processes ensures that both setters and closers can represent the brand effectively.
Best practices include:
- Offering competitive commission structures
- Providing ongoing training and mentorship
- Using CRM systems to track performance and streamline communication
- Encouraging collaboration between setters and closers
- Recognizing and rewarding top performers
By implementing these strategies, companies can create a culture of performance, accountability, and growth. Managing commission-only teams effectively requires strong leadership and consistent support, not just financial incentives.
Industries That Benefit the Most from Commission Only Setters and Closers
Not every industry is equally suited for commission-only models, but some thrive with this structure. High-ticket sales industries, such as coaching, consulting, and online education, rely heavily on setters and closers to reach potential clients. Software as a Service (SaaS) companies also benefit, as their products often require relationship-building before purchase. Real estate, insurance, and financial services are industries where commission-only sales have long been standard, proving the effectiveness of this approach. These sectors work well because the potential earnings are high enough to justify commission-only pay. Businesses in these industries can attract ambitious professionals who are motivated by significant earning opportunities. By focusing on markets where commission-only sales are the norm, companies can build highly effective teams without resistance from potential hires.
Future Trends in Commission Only Setters and Closers
The future of commission-only sales is being shaped by technology, remote work, and global opportunities. Remote sales teams are becoming more common, allowing businesses to hire talent from anywhere in the world. This flexibility opens the door to global recruiting and access to diverse talent pools. Digital tools, such as CRM platforms, AI-driven lead scoring, and automation, are helping setters and closers perform their jobs more efficiently. Artificial intelligence, in particular, is beginning to play a role in qualifying leads, which allows setters to focus more on human interaction. Another trend is the rise of specialized training programs that prepare professionals specifically for commission-only roles. As the business world evolves, commission-only setters and closers will continue to play a pivotal role in growth strategies. Companies that embrace these changes will be better positioned to stay competitive.
FAQ Section
What is the difference between a commission only setter and closer?
A setter focuses on generating and qualifying leads, while a closer specializes in turning those leads into paying customers.
How much can commission only setters and closers earn?
Earnings vary depending on the industry and commission structure. High-ticket industries often provide substantial income potential.
Is commission only sales a sustainable career path?
Yes, many professionals thrive in commission-only roles, especially those with strong motivation and skills in sales.
Do businesses take on risks when hiring commission-only teams?
The financial risk is low since payment is based on performance, but businesses must carefully manage quality and consistency.
How do setters and closers collaborate effectively?
Effective collaboration depends on communication, detailed lead notes, and shared accountability between both roles.
Takeaway
Commission only setters and closers are more than just sales professionals—they are growth drivers for businesses that want to expand without taking on unnecessary financial risks. By dividing responsibilities between lead generation and deal closing, this model creates efficiency, scalability, and motivation within sales teams. While challenges exist, businesses that recruit, train, and manage commission-only professionals effectively can build a high-performing sales system. With technology and remote opportunities shaping the future, commission-only roles will remain a powerful strategy for businesses seeking sustainable growth.