Comments on: Motivational Sales Incentives and How to Screw them Up http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/ Entrepreneurial Leadership and Management . . . and Other Stuff Mon, 15 Mar 2010 03:03:37 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Unconventional Thinking » Blog Archive » Ugly Math http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-4077 Unconventional Thinking » Blog Archive » Ugly Math Fri, 01 Jun 2007 14:01:21 +0000 http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-4077 [...] your team members 20% better…yourself [...] [...] your team members 20% better…yourself [...]

]]> By: Will http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-673 Will Wed, 28 Mar 2007 16:06:18 +0000 http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-673 It's interesting that they still kept the thing on their desks. I wonder if they kept it to remind them that they made club or just how screwed up the *last* job was? Maybe is was motivational in the sense that it reminded them of what a good choice they made in leaving . . . It’s interesting that they still kept the thing on their desks. I wonder if they kept it to remind them that they made club or just how screwed up the *last* job was? Maybe is was motivational in the sense that it reminded them of what a good choice they made in leaving . . .

]]> By: Lorne http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-671 Lorne Wed, 28 Mar 2007 15:32:13 +0000 http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-671 Ah, beware the duality of awards! Two of our sales people had the same green glass do-hickey on their desk. When asked, they explained that they had each made President's Club in their prior employer. The year before they made it, that had included a week's vacation at a European golf resort. The year they made it, the company didn't do as well, and canceled the trip, giving them the do-hickey instead. Did I mention it was their immediately _prior_ employer? Ah, beware the duality of awards!

Two of our sales people had the same green glass do-hickey on their desk. When asked, they explained that they had each made President’s Club in their prior employer. The year before they made it, that had included a week’s vacation at a European golf resort. The year they made it, the company didn’t do as well, and canceled the trip, giving them the do-hickey instead.

Did I mention it was their immediately _prior_ employer?

]]> By: Will http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-540 Will Mon, 26 Mar 2007 22:59:48 +0000 http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-540 Yikes, fewquid! Thanks so much, I'm feeling much better. I'm slowly working on a post on sales compensation. I think that you've already beaten every story I could come up with. Net loss to the company . . . sorry, I had to laugh. And the fact that it didn't get changed for a year. How typical is that part. Love the management plan debacle, too. Ya gotta wonder what people are thinking. Yikes, fewquid!

Thanks so much, I’m feeling much better. I’m slowly working on a post on sales compensation. I think that you’ve already beaten every story I could come up with. Net loss to the company . . . sorry, I had to laugh. And the fact that it didn’t get changed for a year. How typical is that part.

Love the management plan debacle, too. Ya gotta wonder what people are thinking.

]]> By: fewquid http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-539 fewquid Mon, 26 Mar 2007 22:46:31 +0000 http://www.2-speed.com/2007/03/motivational-sales-incentives-and-how-to-screw-them-up/#comment-539 I have two examples just to make you feel better, both from former employers and both at least as dumb, possibly worse... 1) Stupid commission plan. Quotas were given for both direct sales and sales through resellers. Commissions were only paid on direct sales if they exceeded a certain dollar amount each month. Net result? If any of the 3 sales guys had ANY doubt about reaching their direct quota, all their direct sales would miraculously disappear and re-appear as reseller sales. Commission paid on direct sales 2-4%. Discount to resellers 30-35% plus sales guy commission. Net loss to company 32-39% on every possible direct sale. That system was in place for at least a year before it got fixed... 2) Inflexible management plan. I once worked on a contract basis in Technical Support/Customer Service. The department had (typically) high staff turnover. Genius incentive: bonus tied to low staff turnover. Stupid mistake: including promoted staff in turnover numbers. Net result: manager hired people who were poor performers with no ambition over well qualified and proven contract staff. Net loss to company 3 strong contractors within 3 months, all of whom had previously planned on staying with the company for the foreseeable future. Not to mention general resentment from permanent staff now stuck with lazy bozos in their team... Feeling better now??? I have two examples just to make you feel better, both from former employers and both at least as dumb, possibly worse…

1) Stupid commission plan. Quotas were given for both direct sales and sales through resellers. Commissions were only paid on direct sales if they exceeded a certain dollar amount each month. Net result? If any of the 3 sales guys had ANY doubt about reaching their direct quota, all their direct sales would miraculously disappear and re-appear as reseller sales. Commission paid on direct sales 2-4%. Discount to resellers 30-35% plus sales guy commission. Net loss to company 32-39% on every possible direct sale. That system was in place for at least a year before it got fixed…

2) Inflexible management plan. I once worked on a contract basis in Technical Support/Customer Service. The department had (typically) high staff turnover. Genius incentive: bonus tied to low staff turnover. Stupid mistake: including promoted staff in turnover numbers. Net result: manager hired people who were poor performers with no ambition over well qualified and proven contract staff. Net loss to company 3 strong contractors within 3 months, all of whom had previously planned on staying with the company for the foreseeable future. Not to mention general resentment from permanent staff now stuck with lazy bozos in their team…

Feeling better now???

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