How can you motivate your employees to sell more? This is a simple answer: reward your staff with incentives to increase sales. Club owners often make the big mistake of reacting in a knee-jerk way to salespeople who have earned too many commissions. This is what happens in January when clubs’ sales staff make more money because of the more significant number of customers.
At the end of each month, the club owner looks at their expenses and notices that January’s payroll was up 50%. Instead of thinking about how to save money on payroll, they look at the fact that they sold 50 percent more members in January. You can send your sales spiraling quickly by changing the pay structure after a successful month. This will make it appear that you are decreasing expenses. The right system will show you that the more your staff make, the more you can make. You need to evaluate your current system.
In order to reduce costs, you will force your sales team into selling more memberships in order to make the same money as the previous month. You will affect staff morale and increase the likelihood that they lose motivation. Let’s face facts; the sale is a lucrative career. Sales-related careers are America’s highest-earning jobs. Why is this? Why? Because salespeople are driven by money. The more they sell, the more they make. Club owners often forget that the greater the salesperson’s earnings, the better the club will end up.
Your entire team should be offered incentives to help them sell.
No matter if you are a salesperson, a child care provider, a teacher of aerobics, or a member of the cleaning crew, everyone should be able to earn commissions. It would be better to have all my staff recruit new prospects than just a few salespeople. This is because your sales team can’t be everywhere and will not have a relationship with every member of your facility.
Let’s take, for example, a child care division. Each day, a different member visits and speaks to the women in child care. Let’s now ask ourselves: Who is more likely to get this member to bring a guest or take a guest pass to the club? Because they have built a trusting relationship with the member, the child care staff member is more likely to succeed with them.
Your staff should be motivated to promote the club even when they are not at work. Imagine your staff member is driving to work and hears someone talk about finding a gym. A team member will offer to pay $10-$40 more and say that he or she heard someone talking about a gym. It’s a great club. I’m a child care worker. I hope you’ll visit it.
The staff member would likely have ignored the offer of an incentive if they didn’t know what to do. You are encouraging them to become a marketing army, handing out passes throughout the town by giving them a commission. Do you prefer to have two salespeople marketing your facility, or all ten of your staff selling it? It’s evident that the answer is obvious. However, it’s essential to have the right incentives. This is just the nature and essence of the beast. You are wrong to think that you are helping your company by limiting incentive and bonus payments. You are only saving pennies now and losing many dollars in the future.
You may worry about how much your sales team will make by selling memberships to other employees. It is not. Zero. Zilch. Nada. Nada.
You still need to offer incentives for them in order to keep them happy and to fill out paperwork. Trust me; if you ask a salesperson for commissions or other incentives, they’re likely to be upset. The motivation for the salesperson? They get to add that sale towards their monthly totals and receive a bonus. This keeps the salesperson happy and motivates the staff to work together. It’s great to offer team bonuses to encourage and support your staff in prospecting.
Which type of bonus structure should you use?
Three benchmarks are goals that I prefer to set for each member of the sales team. They set new goals for contracts, EFT, and down payments/cash. They get a bonus of $15 to $150, depending on the value of their gross memberships. Staff members who achieve all three goals will receive an additional premium. If they complete all their goals, they could earn anywhere from $60 to $200 in bonuses per month. This is why I enjoy it. This not only provides incentives for team members to reach specific benchmarks but also teaches them how important it is to sell well.
It’s the end of the month, and one team member has set a new goal to reach 30. They are currently at 29. They know that they can get $50 more if they sign one more contract. They could end up signing two or three more people on the same day by trying to make one more sale. Because your salesperson was motivated to reach a $50 goal, they signed three people up for a monthly draft for one year. It’s a win-win situation for both the club and the salesperson.
When the month ends, would you instead start the next month with a team that didn’t make any extra money or one who just made a little extra from the hard work they put in? I will choose the second team. The club will be paying another $500 in salary, but the team will still be motivated to do more because they want the bonus again. Do not be cheap. Recognize your employees, and you will be rewarded.