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Except if competitor A hires a salesperson who brings in $1M of sales from competitor B and competitor B hires a salesperson who brings in $1M of sales from com
by shalmanese 11y ago
Except if competitor A hires a salesperson who brings in $1M of sales from competitor B and competitor B hires a salesperson who brings in $1M of sales from competitor A, you now have the exact same revenues at both companies, $1.8M extra in salesperson compensation and an equivalent $1.8M drop in your budget for everything else, including research.
- hvidgaard 11y agoWhat you describe is a classic example of the prisoner's dilemma. They will all be better of not hiring a salesperson, but if one does it all have to do it to keep status quo. That said, the real world is not that simple.
- manigandham 11y agoThat's not how it works. There's no "stealing" sales, both salespeople are just closing in $1M in value of the available market. And how would your budget drop if the salesperson is bringing in more than they cost? Not having salespeople doesn't mean the same money will still be coming in, rather it would be potential market left uncaptured.