5 ms·

This suggests that a sales team would do better without performance bonuses!

by xiaoma 11y ago

u02sgb 11y ago
I wouldn't agree with that. I think it more suggests that money isn't the great motivator it's generally been considered. In my opinion a passion for something is a better motivator than a big bonus. Although a big bonus does contribute!
- mpdehaan2 11y ago
  I think when sales folks get large commissions and the other people involved in creating and marketing what gets sold do not, it can be very demotivating for an entire company -- especially if the sales people have an easy job of selling something, as opposed to having to work an account for a year or something like that. It depends how much the commisions are though. I think they should always be capped, or rather just track % of quota and use it as a way to compute how much of their quarterly 10% variable pay (or whatever) people get. Higher base also implies you trust people. I love the idea of helping the customer first versus pushing for a sale where something might not fit, and if you do that, people will buy things.
- deleted 11y ago
  [deleted]
AndrewDucker 11y ago
Some people believe that: http://www.tintup.com/blog/why-our-startup-got-rid-of-sales-commissions-with-monthly-team-bonuses/ http://www.tintup.com/blog/why-our-startup-got-rid-of-sales-... http://www.samihonkonen.com/a-sales-team-without-bonuses/ http://www.samihonkonen.com/a-sales-team-without-bonuses/ http://www.yesware.com/blog/moving-salespeople-off-a-bonus-heavy-comp-plan/ http://www.yesware.com/blog/moving-salespeople-off-a-bonus-h...
- amttc 11y ago
  This is interesting. Is there anyone who has worked in companies like this willing to talk about how it ends up working out? I've never been in sales but I've never heard of companies not implementing commission.
  - deleted 11y ago
    [deleted]
bonobo3000 11y ago
I think the act of receiving a high bonus as a proxy of your bosses satisfaction is the most valuable part of the performance bonus for some people. For others, the money is the motivator. Works out well both ways.

This suggests that a sales team would do better without performance bonuses!

by xiaoma 11y ago

This suggests that a sales team would do better without performance bonuses!

I wouldn't agree with that. I think it more suggests that money isn't the great motivator it's generally been considered. In my opinion a passion for something is a better motivator than a big bonus. Although a big bonus does contribute!

mpdehaan2 11y ago
I think when sales folks get large commissions and the other people involved in creating and marketing what gets sold do not, it can be very demotivating for an entire company -- especially if the sales people have an easy job of selling something, as opposed to having to work an account for a year or something like that. It depends how much the commisions are though. I think they should always be capped, or rather just track % of quota and use it as a way to compute how much of their quarterly 10% variable pay (or whatever) people get. Higher base also implies you trust people. I love the idea of helping the customer first versus pushing for a sale where something might not fit, and if you do that, people will buy things.
deleted 11y ago
[deleted]

AndrewDucker 11y ago

Some people believe that: http://www.tintup.com/blog/why-our-startup-got-rid-of-sales-commissions-with-monthly-team-bonuses/ http://www.tintup.com/blog/why-our-startup-got-rid-of-sales-... http://www.samihonkonen.com/a-sales-team-without-bonuses/ http://www.samihonkonen.com/a-sales-team-without-bonuses/ http://www.yesware.com/blog/moving-salespeople-off-a-bonus-heavy-comp-plan/ http://www.yesware.com/blog/moving-salespeople-off-a-bonus-h...

amttc 11y ago
This is interesting. Is there anyone who has worked in companies like this willing to talk about how it ends up working out? I've never been in sales but I've never heard of companies not implementing commission.
- deleted 11y ago
  [deleted]

bonobo3000 11y ago

I think the act of receiving a high bonus as a proxy of your bosses satisfaction is the most valuable part of the performance bonus for some people. For others, the money is the motivator. Works out well both ways.