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I hope it works out for you, but I don't work with (m)any reps who'd jump at that kind of deal. On your end, metrics don't fix the retention problem. On the re
by djrogers 11y ago
I hope it works out for you, but I don't work with (m)any reps who'd jump at that kind of deal. On your end, metrics don't fix the retention problem. On the reps end, you're missing a lot of emotional and phsychological drivers that sales people crave
1) no windfall opportunity - your rolling monthly commission eliminates any chance that someone is going to earn a six figure commission check by landing a whale. While most reps never or rarely pull that off, it is a huge motivator to both the rep who does it and his/her peers.
2) can you say handcuffs? A rep isnt going to want to get in to a situation where they know the only way they will ever get paid on the true LTV of all their customers is by staying with you until the company dies (not that it will).
You might think this will improve retention, but t will also drive away a TON of good and great sales reps.
3) you're going to burn them out - using your example of a rep who closes (and gets paid monthly) on 10 new customers a year, your most successful reps are going to overloaded in short order. This leads to ignored customers and stressed sales teams. The normal way of handling this is to progressively cut a reps territory and/or account list, which works fine if they've been fully compensated for the customers LTV, but if you take half of someone's landed accounts off their monthly rolling commission you're going to have a revolt.
Again, I hope this works for you, but I have my doubts.