SHOW ME SALES…
HARVARD GETS RADICAL The reps of the future won’t work on commission. Some things in life we know are true. The sun rises in the east and sets in the west. A body will remain in motion unless activated by an outside force. And the best way to motivate salespeople is by offering them commission. What if paying salespeople commission is rooted more in tradition than logic? Is that so last century? Debate that old adage ‘do this, get that’ policy which, for some, see it as based on a carrot-vending machine.
In the UK commission selling is falling through the floor. USA has wiped away 40% of commission sales. Examples include Redgate Software (UK), Microchip (UK), GlaxoSmithKline (USA). It is now looming as no about the ‘individual’ but more about boosting corporate. What seems to be happening is that ‘non-commission’ sale outcomes is working a treat – total sales is shown as increasing (at least for the corporate world).
The majority new approaches provide 90% in a high base salary and the other 10% linked to corporate outcomes – aimed at top-line growth, profits and earnings per share. Yes, share reward outcomes are growing. Thinking please 🙂