A Big Reason Why Your Company Struggles
To Hire Salespeople Who Can REALLY Sell
One of my best friends sold for me 20 years ago at Radio Profits Corporation. AMAZING salesperson. Once he gets the prospect in his crosshairs, they may as well just hand over their wallet. The beauty is, they don’t know they’re being sold. Everything Bruce says is just totally logical. No pressure. No emotion. Just comfortable as hell.
People love him. His prospects become his customers and his friends.
So then we sold Radio Profits. Bruce went to work for a company selling environmental testing and construction testing. It’s a BIG market. Companies need a lot of scientific tests to comply with government regulations. For instance, companies have to satisfy a long list of health regulations, to keep things safe for consumers and avoid problems with the government.
So testing is a monster business. Bruce sold for one of the biggest companies that do this testing. One day he showed me that company’s compensation strategy. It was like a maze. Every paragraph had something you couldn’t figure out. It was so convoluted, the company sales team used to joke about it.
Bruce sold more of this testing than anybody else on the East Coast, double or triple the #2 guy. And he’d only been with them a year or two. He was stomping it. BUT he wasn’t the top earner. And THAT was extremely de-motivating to him. Company eventually went broke. They just weren’t very profitable, because the sales team wasn’t being paid very well for the deals they brought in.
It’s not that unusual. A LOT of compensation strategies are not well-engineered. Too complicated. BIG mistake.
A star salesperson who’s considering joining your sales team sees it as a very bad indicator if your compensation plan is hard to understand. A good salesperson looks at that and thinks, “These are smart guys. They could make it easy to understand. But they didn’t. If they make it tough for me to figure out how I’m being paid, then THAT makes it easier for them to screw me.”
That type of compensation plan will NOT result in a strong bottom line for your company.
This is Alan Fendrich. I’d be happy to give you my thoughts on your company sales compensation plan. Give me a call.