We're 95% commercial 5% residential 3m shop I run the operations and producing sales. Last January i hired a salesman who worked on the roof for me years ago with pretty good personalty. He's on salary of 50k and has not produced really nothing he's taken my leads and cost me money and brought none of his own leads in, I know why is he still here I gave him a year, this year I'm hiring another salesman and I'll let him stay on for a commission only pay. i'm asking what is the best way to pay a salesman so its to their and mine benefit to produce.
The best way is probably strictly commission. However, there will be weeks with no sales and employees still need money to keep things going just like businesses do.
You could give draws toward future commissions or what I used to do when I had sales staff was pay a low salary plus commission. I did not want to overpay them nor did I want them owing me too large a sum of money so I paid $500 weekly salary plus commission. That way they had to sell in order to get a good check but always got something to get them by if it was a slow week.
If paid too much salary some people will just ride that til the end of time and not put forth much effort to do any better. If this is the kind of person they turn out to be, you probably don't need them working for you anyways.