3 ms·
>and didn’t give them quotas or bonuses I think the model would still work as well from a revenue perspective, Maybe our intuitions and idealism on what motiva
by jasode 6y ago
>and didn’t give them quotas or bonuses I think the model would still work as well from a revenue perspective,
Maybe our intuitions and idealism on what motivates salespeople don't match reality.
E.g. The CEO of Pluralsight tried to remove commissions and quotas for salespeople and he even wrote an article about it[1] -- but he later changed his mind. You can read latest Glassdoor posts from salespeople about being paid commissions and there was also a post on HN.[2]
In other words, if you assigned the role of sales to customer support reps, they may not be persuasive enough to close future sales and you lose revenue. This means there won't be any money to pay a salary to the customer reps to continue acting as "salespeople".
It really depends on the product. If it's a popular consumer product like an Apple iPhone, the Apple store employees can be passive "order takers" instead of commissioned salespeople. But if it's a B2B SaaS, you'll most likely need traditional monetary incentive structures to motivate salespeople.
[1] https://www.inc.com/aaron-skonnard/why-sales-commissions-don-t-work-in-the-long-run.html https://www.inc.com/aaron-skonnard/why-sales-commissions-don...
[2] https://news.ycombinator.com/item?id=15234762 https://news.ycombinator.com/item?id=15234762