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
GradingMar 06, 2026
Tom Moses Leaving GIA After Nearly 50 YearsMoses, who started at GIA’s Santa Monica lab in 1976, will leave the Gemological Institute of America in May.
Lab-GrownMar 06, 2026
Charles & Colvard Files for Bankruptcy, Citing Price PressuresIncreased competition, falling lab-grown diamond and moissanite prices, and the rising cost of gold took a toll on the moissanite maker.
CollectionsMar 06, 2026
Zome’s ‘Solara’ Earrings Embody Celestial BeautyThe earrings, our Piece of the Week, feature pink tourmalines as planets orbiting around an aquamarine center set in 18-karat rose gold.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
MajorsMar 06, 2026
Pomellato’s 2026 IWD Campaign Spotlights Economic Abuse“The Price of Freedom” campaign video for International Women’s Day confronts the quiet violence of financial control.
Weekly QuizMar 05, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Policies & IssuesMar 05, 2026
Tariffs to Increase to 15% This Week, Treasury Secretary Says Also, a federal judge has ordered that companies that paid tariffs implemented under the IEEPA are entitled to refunds.
CollectionsMar 05, 2026
Common Era Honors ‘Difficult Women’ in CollectionThe ever-growing collection, which just expanded with the addition of Olga of Kyiv, features cameos of 12 women from history.
Brought to you by
DCA Enters a New Chapter in Jewelry EducationWith refreshed branding, a new website, updated courses, and a pathway for growth, DCA is dedicated to supporting retail staff development.
TrendsMar 05, 2026
Engagement Ring Trends 2026: What’s In, and WhyWe asked a jewelry historian, designer, bridal director, and wedding expert what’s trending in engagement rings. Here’s what they said.
Events & AwardsMar 05, 2026
AGS Announces Conclave 2026 Speaker LineupThe annual event will be held in Orlando, Florida, from Sept. 14-17.
TrendsMar 05, 2026
Caitríona Balfe Fronts Only Natural Diamonds CoverThe “Outlander” star modeled for the digital cover of the magazine’s spring issue, which features a story on her relationship with jewelry.
MajorsMar 05, 2026
Registration Opens for CIBJO Centenary CongressThis year’s annual congress, which will mark the confederation’s 100th anniversary, will take place this fall in Italy.
MajorsMar 04, 2026
Michael M Opens First StoreBeverly Hills was chosen as the location for the brand’s first store, designed as a “private residence for modern monarchs.”
Policies & IssuesMar 04, 2026
Luxury Brands Temporarily Shutter Middle East StoresKering, Apple, and other retailers have reportedly temporarily closed stores in the Middle East region in light of the recent conflicts.
EditorsMar 04, 2026
Q&A: Brilliant Earth’s CEO on the New Beverly Hills StoreBeth Gerstein discusses the vibe of the new store, what customers want when fine jewelry shopping today, and the details of “Date Night.”
Events & AwardsMar 04, 2026
JIS Miami Spring Show to Feature New Gifts Pavilion, Pop-Up Trends TalksNearly half of buyers are prioritizing silver and fashion collections this season, organizers said.
TrendsMar 04, 2026
Spinelli Kilcollin Rides Free In Year of the Horse CampaignThe “Live Now. Polish Later.” campaign features equestrians wearing the brand’s jewels while galloping across the icy plains of Kazakhstan.
MajorsMar 04, 2026
LeachGarner Names New Brand DirectorThe precious metals provider has promoted Jennifer Ashworth to the role.
Events & AwardsMar 03, 2026
Johnny Nelson Wins David Yurman Gem Awards GrantNelson will be honored as the inaugural grant winner at the Gem Awards gala on March 13.
SourcingMar 03, 2026
7 Trends That Could Define the Diamond Industry’s FutureExperts from India weigh in the politics, policies, and market dynamics for diamantaires to monitor in 2026 and beyond.
MajorsMar 03, 2026
Swiss Refiner Completes Acquisition of Gannon & ScottThe American precious metals refiner’s day-to-day operations remain the same post-acquisition.
TrendsMar 03, 2026
Amanda’s Style File: AquatopiaThese aquamarine jewels channel the calming energy of the March birthstone.
Events & AwardsMar 03, 2026
AGTA Adds Another New Category for SpectrumThe “Innovative Design” category and award will debut in the Spectrum division of this year’s AGTA Spectrum & Cutting Edge Awards.
EditorsMar 02, 2026
Jewelry at the Actor Awards: Reimagining Hollywood GlamourDiamond jewelry was the star of the event formerly known as the SAG Awards.
SurveysMar 02, 2026
Consumer Confidence Edges Up in FebruaryConsumers were somewhat less worried about the future, though concerns about rising prices and politics remained.
Events & AwardsMar 02, 2026
JVC to Honor Rebecca Foerster at Annual LuncheonFoerster is this year’s Stanley Schechter Award recipient.
Events & AwardsMar 02, 2026
JFC Names 2026 ‘Facets’ Honorees Sponsorships and tickets to the annual fundraising event, set for May 31, are available now.
