In the competitive world of real estate, many firms opt for a commission-only model, hiring junior agents without a basic salary. This practice often leaves new agents struggling to close deals in the initial months, pushing them into difficult situations and fostering a high-pressure “push marketing” environment.
“It is usual to hire a lot of junior agents without a basic salary and on commission only. Not closing deals in the first months is quite common, which puts these agents in difficult situations. This impacts the service offered,” said Soufien Haddad, Co-Founder, SweetcHome.
SweetcHome stands out in this landscape by offering agents a basic salary unless they prefer a commission-only scheme. “This limits our recruitment capacity but ensures care is at the heart of the service we offer,” Haddad explains.
The company’s approach is designed to foster a secure and supportive work environment where agents can prioritise personalised service and customer care without the constant pressure of survival mode.
While many in the industry stick to commission-based pay, SweetcHome aims to set a new standard. “Providing fixed salaries is important when you want to build a secure team where your team members can offer customers personalized service and great customer care. This is particularly important if you want to prevent your salespeople from being in constant survival and push mode,” Haddad added.
This strategy is particularly crucial for preventing the high turnover and burnout often seen in commission-only setups, they explain. Of course, some salespeople, especially those with financial stability, thrive on commission-based positions, targeting high commissions through significant deals.
Recognising this, SweetcHome adopts a flexible approach, offering various compensation schemes tailored to different needs and profiles.
“There is no one-size-fits-all solution,” Haddad notes, “but a balanced approach is required to offer the right compensation and benefits based on different needs and profiles.”
By prioritising their agents’ financial security and well-being, SweetcHome aims to revolutionise real estate sales, promoting a more sustainable and customer-focused service model.
“Commission-only structures still exist—and work—in some sectors, notably real estate. However, other industries will face challenges in attracting the right professionals if they only offer commission-based remuneration, and we predict a wider shift towards salary and commission systems going forward,” said Tiago Costa, CEO of Parisima Talent.
Sales is a dynamic, ever-evolving profession that comes in a variety of forms. These days, technological advances have, to some extent, replaced traditional methods such as cold calling and knocking on doors.
As market shifts and trends create business opportunities, companies invest in building stronger sales teams. “A robust sales force can make the difference between success and failure,” Costa adds.
Currently, the UAE market is witnessing extensive recruitment for sales roles, with large numbers of candidates applying. However, a balance must be struck between attracting, appointing, and retaining the best candidates and providing the right pay structure for individuals and companies to succeed.
Increasingly, businesses are attracting sales professionals with an On Target Earning structure, which combines a regular salary and monthly or quarterly commission. Some companies offer a lower salary that is complemented by a higher on-target potential to enable sales professionals to earn more.
For people moving into a new sales role with a salary and commission-based structure, there’s a fine line between high earning potential and the prospect of taking home less money than they did before. Companies need to thoroughly evaluate candidates and, once on board, provide the necessary tools, technology, and training to set them up to succeed.
The evolving landscape of sales compensation models reflects a broader trend towards balancing financial stability with performance incentives. SweetcHome’s innovative approach underscores the importance of adapting to meet both agent needs and market demands, ultimately fostering a more sustainable and customer-centric business model.
