Report: Peloton Sales Team Will No Longer Work On Commission For Retail Store / Showroom Employees

We have received reports that Peloton is transitioning their sales team away from commission-based compensation plans. Peloton notified impacted employees of the change at the end of last week. Update – These changes to into effect on July 1st, so employees will earn commission until then.

Retail showroom employees are affected. Employees are receiving an increase in their base pay to offset some of the loss in commission pay.

Update – An earlier version of this article stated that the inside sales team would be impacted as well. We are now hearing they might not be included in these changes, and it is only the retail showroom employees impacted.

There will still be sales goals in place for the employees, even with the removal of the commission component of the sales team employees.

When we share news about ongoing sales, we typically include a reminder that placing an order for a hardware device through your local showroom will earn a Peloton employee a commission – however, that will no longer be the case moving forward after the changes begin on July 1st, 2023.

Each employee is affected differently depending on the frequency and strength of their sales – inevitably some will be impacted more significantly than others.

Peloton has previously altered the pay structure of their sales employees. Most notably, in late 2021 Peloton drastically reduced the pay of their retail employees, resulting in a pay cut of 30%-60% in some cases.

As a reminder, Peloton is also in the process of shutting down showrooms across the United States and Canada. This measure was announced at the end of 2022. 16 showrooms were closed at the beginning of 2023, and more have closed since then. This is part of Peloton’s overall restructuring and streamlining effort that has been ongoing since Barry McCarthy became CEO in February of 2022.

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Katie Weicher
Katie Weicher is a writer for Pelo Buddy. She purchased her Peloton Bike in 2016 and has been riding, strength training, and yoga flowing ever since. You can find her on the leaderboard at #kweich.

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