Salary vs. Straight Commission Does salary-based pay maintain sales ethics? Bob Dillon thinks the answer to that question is yes. His track record proves it. He believes consumers understand a sale that’s information-based vs. a sale made by a hard closer on straight commission.

But George Faerber of Bee Window, one of Dillon’s friendly Indianapolis competitors, who has 19 salespeople, says paying sales reps a base salary isn’t a burning topic among companies with whom he networks.

Faerber does have four new sales reps on a salary-based pay system. “It helps someone get in and helps them see the business,” he says. But once they can write business and sell orders, they move to straight commission.

“I don’t see, from the consumers’ standpoint, a big difference in salary vs. commission,” Faerber says. “The difference is how you set up your pricing structure. They have to sell it for what you sell it for. Under the old par systems, like on siding, if it was $400 a square and the salesman could get 800 bucks, he’d split the difference. It’s a license to steal.

“From my vantage point, there’s no advantage to the customer if the salesperson has an incentive to slide up price and get more money.”

Not that Faerber is pointing fingers.

“I’m not going to throw the guys under the bus who still work on the par system,” he says. “But I feel the best way to do it is to have a price you sell it for, and pay commission on that.”