ColumnistsMay 21, 2025
Edahn’s Take: Analyzing the 2025 ‘$100 Million Supersellers’ List ColumnistsJun 17, 2025
Peter Smith: Is Your Comp Plan a Hiring Hindrance?
If you want to attract good salespeople and generate a stream of “sleeping money” for your jewelry store, then you are going to have to pay.
Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com.
I’ve had a few conversations lately with retailers who have become exasperated at their inability to attract quality sales talent.
While the frustration is not new, what struck me was how, in these cases, the challenges were obvious, self-inflicted, and eminently fixable.
Some might prefer to believe otherwise, but sales is a competitive sport. It doesn’t have to be a “contact” sport, but it is competitive.
Failure to acknowledge that doesn’t make it any less so, but it often serves as a detriment to attracting (and retaining) talented salespeople.
Why some business owners choose to ignore the competitive nature of sales and choose to pay a base salary or hourly wage is not always clear, but one of the oft-cited excuses is they want to protect their culture.
“I don’t want my customers to be pressured into buying when they come in.”
OK, that’s an interesting one, but unless you are a not-for-profit entity, your business relies on customers making buying decisions.
Given the psychological research on how little we as humans know about our own motivations and drivers (it’s widely believed that our subconscious generates about 95 percent of our thoughts), we need talented salespeople to positively influence and inspire buying behavior.
Related stories will be right here …
While the frustration is not new, what struck me was how, in these cases, the challenges were obvious, self-inflicted, and eminently fixable.
Some might prefer to believe otherwise, but sales is a competitive sport. It doesn’t have to be a “contact” sport, but it is competitive.
Failure to acknowledge that doesn’t make it any less so, but it often serves as a detriment to attracting (and retaining) talented salespeople.
Why some business owners choose to ignore the competitive nature of sales and choose to pay a base salary or hourly wage is not always clear, but one of the oft-cited excuses is they want to protect their culture.
“I don’t want my customers to be pressured into buying when they come in.”
OK, that’s an interesting one, but unless you are a not-for-profit entity, your business relies on customers making buying decisions.
Given the psychological research on how little we as humans know about our own motivations and drivers (it’s widely believed that our subconscious generates about 95 percent of our thoughts), we need talented salespeople to positively influence and inspire buying behavior.
I’ve also heard, “I don’t want an environment where people are climbing over each other to get to the customer.”
Again, interesting, but sort of like a global pandemic, that happens, but rarely.
If you have established a culture of respect and support for your team and customers, there is absolutely no reason you should have that kind of mayhem, regardless of the compensation plan you deploy.
If you do, that’s a management issue, not a comp issue.
We can all agree that there is absolutely no excuse for salespeople fighting with each other to get to the customer first. Again, not quite as rare as a pandemic, but not the sort of thing one often sees in retail environments, and easily stamped out if witnessed.
Refusing to have a compensation plan that is not commission and/or bonus based is like cutting your head off to avoid a toothache. It definitely fixes one problem, but at what cost?
“Instead of advertising an hourly wage, advertise that successful candidates will have an opportunity to earn six figures.”— Peter Smith
However much we want to believe otherwise, sales is a meritocracy and the best salespeople, those folks who wake up in the morning already thinking about what opportunities they are going to make happen that day, need to be paid accordingly.
That means they know what the scorecard looks like, they know exactly what they need to accomplish to be successful, and they have confidence that no one is putting a finger on the scale to curtail their success or pandering to their less motivated colleagues by having a comp plan that has mediocrity, not meritocracy, as its high watermark.
Instead of advertising an hourly wage, advertise that successful candidates will have an opportunity to earn six figures. Doing so is not a guarantee that they will make six figures, but it tells them that there will be a clear path to getting there if their performance merits.
Make sure the commission or bonuses align with the company’s best interests.
Pay for profitable dollars, not gross sales. That is important in all business, but critical in stores where discounting is permitted, or where an important brand is delivering short margins.
There’s an old chestnut in sales that says the best kind of business is when you have “sleeping money,” meaning subscription services, insurance, annuities, or any other streams of revenue that deliver repeat sales without you having to be present.
In retail, the best kind of “sleeping money” is top sales talent. When you and/or others are consumed with other aspects of the business, they’re making things happen. It’s how they are wired.
Hire that and compensate accordingly.
Happy retailing!
That means they know what the scorecard looks like, they know exactly what they need to accomplish to be successful, and they have confidence that no one is putting a finger on the scale to curtail their success or pandering to their less motivated colleagues by having a comp plan that has mediocrity, not meritocracy, as its high watermark.
Instead of advertising an hourly wage, advertise that successful candidates will have an opportunity to earn six figures. Doing so is not a guarantee that they will make six figures, but it tells them that there will be a clear path to getting there if their performance merits.
Make sure the commission or bonuses align with the company’s best interests.
Pay for profitable dollars, not gross sales. That is important in all business, but critical in stores where discounting is permitted, or where an important brand is delivering short margins.
There’s an old chestnut in sales that says the best kind of business is when you have “sleeping money,” meaning subscription services, insurance, annuities, or any other streams of revenue that deliver repeat sales without you having to be present.
In retail, the best kind of “sleeping money” is top sales talent. When you and/or others are consumed with other aspects of the business, they’re making things happen. It’s how they are wired.
Hire that and compensate accordingly.
Happy retailing!
More on Columnists
The Latest
IndependentsJul 14, 2026
Foundrae Opens First Standalone Store Outside USThe New York-based jewelry brand has expanded overseas, opening a store in London’s Mayfair district.
TrendsJul 14, 2026
Amanda’s Style File: Shoulder Dusters These long, fluid drop earrings are sure to catch the eye.
CrimeJul 14, 2026
Man Charged in $1M Jewelry Store Heist Lands on FBI Most Wanted ListAlberto Perez-Elias is one of four men charged with robbing a Cape Coral, Florida, jewelry store and is the only one still at large.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
Events & AwardsJul 14, 2026
Conference on Mining, Sustainability Kicks Off in NYCInitiatives in Art and Culture is hosting its 16th annual Gold and Diamond Conference, with the theme of “Resilience.”
Weekly QuizJul 09, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Lab-GrownJul 13, 2026
Stephanie Gottlieb Changes Her Mind on Lab-Grown DiamondsThe designer, who once said she’d never sell lab-grown diamonds, debuted two capsule collections designed to be fun and easy to wear.
SourcingJul 13, 2026
De Beers Announces Potential Layoffs, 2-Year Production Pause at VenetiaThe diamond miner and marketer is undergoing another round of cost-cutting measures ahead of its sale by Anglo American.
Brought to you by
Building the Future of Jewelry Retail: DCA Expands Education, Leadership Development, and Workforce SolutionsDCA is preparing the next generation of professionals by supporting workforce development, leadership growth, and career advancement.
Events & AwardsJul 13, 2026
Registration Opens for JIS Fall 2026 ShowThe annual trade-only buying event is slated for Oct. 16-19 in Miami Beach, Florida.
Events & AwardsJul 13, 2026
AGTA Accepting Entries for Spectrum 2026AGTA also has announced the lineup of judges for the colored gemstone cutting and jewelry design contest’s various categories.
TechnologyJul 10, 2026
There’s a New Blind Box for Luxury Watches Collectibles platform Arena Club’s new Time Boxes could contain a Rolex or Patek Philippe watch.
TrendsJul 10, 2026
Jade Trau Creates a Constellation of DiamondsThe “Constellation Plié” collar, our Piece of the Week, features diamonds arranged in a constellation of shining stars.
SourcingJul 10, 2026
CFO of De Beers’ Consumer-Facing Division Leaves Company Shaun Wills joined the company in 2024 and was chief financial officer of the De Beers Brands and Consumer Markets division.
WatchesJul 10, 2026
Brilliant Earth Expands Into WatchesIn honor of its 20th anniversary, the jewelry brand has released a limited-edition collection of Swiss-made timepieces.
CollectionsJul 09, 2026
Boucheron’s New High Jewelry Collection Is an Ode to the Human Touch“Human Being” highlights the similarities and differences between us through five sets of jewelry that celebrate fine craftsmanship.
WatchesJul 09, 2026
Damiani Group Finalizes Acquisition of Baume & MercierRichemont will continue to provide operational services for the watch brand for a period while the group prepares to integrate it.
AuctionsJul 09, 2026
Pharrell Williams’ Joopiter Hires Former Bonhams Exec to Head New Watch DivisionNate Borgelt will lead the digital auction house and content platform’s new division as head of watches.
Events & AwardsJul 09, 2026
Halstead Names 2026 Grant WinnerEnoch Platero, founder and designer behind Enoch Michael, is the first Native American jeweler to win the award.
Events & AwardsJul 09, 2026
AGS, GIA Name 2026 Beatrice Shipley Scholarship WinnerAGS also announced the recipient of its “Women in Leadership” scholarship.
MajorsJul 08, 2026
Kendra Scott Joins ‘Shark Tank’ As Permanent Investor The founder of the billion-dollar jewelry and lifestyle brand will debut as a full-time “Shark” on the upcoming season of the show.
SurveysJul 08, 2026
Signet Jewelers Falls 5 Spots on NRF’s ‘Top 100’ Retailers ListPlus, why retailers should be ready to adjust as the U.S. population may decline this year for the first time since the Great Depression.
CrimeJul 08, 2026
Here’s What Thieves Stole From the Lalique Museum René Lalique’s “Woman Dragonfly With Open Wings” pendant, the first piece the museum acquired, was one of the jewels taken.
MajorsJul 08, 2026
Richline Group Promotes 2 ExecsArien Gessner and Moss Makhoulian have been elevated into newly created roles.
Events & AwardsJul 07, 2026
JA Announces 2026 Impact Initiative RecipientsThe association selected eight recipients for the funding program, which is in its second year.
TrendsJul 07, 2026
Amanda’s Style File: Ruby, White and Blue Whether celebrating America’s 250th birthday or the USA’s World Cup run, July birthstone jewelry can double as a patriotic accessory.
CrimeJul 07, 2026
Thieves Steal Millions in Jewels From France’s Musée LaliqueAround 20 pieces of jewelry were stolen from the museum dedicated to French jeweler and glassmaker René Lalique.
CollectionsJul 07, 2026
Robinson Pelham Is Partying Like It’s 1996The “Summer of ’96” campaign and collection celebrate the year the brand was founded for its 30th anniversary.
