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Commissions work only if they influence behavior in the way you want. In this case, you're paying the same percentage commission to your salespeople no matter i
by BobbyH 17y ago
Commissions work only if they influence behavior in the way you want. In this case, you're paying the same percentage commission to your salespeople no matter if they answer an inbound lead or make an outbound call. It's thus rational for them to just focus on inbound leads, because the commission/ounce-of-effort ratio is so much better.
If you want to change their behavior, you need to do one of three things:
1. Require that salespeople hit certain targets/quotas for desired activities or their commissions get a haircut (e.g. you get 15% commission if you hit your target, 10% if you don't). Some possible targets:
* Make at least X outbound calls a week
* Close at least Y sales generated from outbound leads
2. Pay a lower commission for inbound leads and a higher rate for outbound leads. This will require policing so that salespeople don't mark inbound leads as outbound leads.
3. Stop using commissions as a stick/carrot and hire good self-motivated people, like you do for other departments. Here's a great article on that: http://www.inc.com/magazine/20030501/25416.html http://www.inc.com/magazine/20030501/25416.html
P.S. Yes, all calls need to be logged for a commission to be paid. If you can't afford Salesforce or Netsuite, try Highrise. You need to be using a CRM anyway.
- mrtron 17y agoAs the analogy goes - coffee is for closers. Seriously consider getting someone with experience in sales to come and manage the team, and bring processes in.