The Case for Ending Sales Commissions By Dan Enthoven

“Every so often I see an article that I am compelled to share with those of you who have and do Whatever It Takes. While I disagree with many of the positions in this article there are some ideas here that must get your attention. I think there is two very important take always in this article: First, the sales person’s structure is in under scrutiny which means people are finding less value in the average sales agent. Second, in the field sales people is reducing is an opportunity. As I wrote in my best seller, “If You’re Not First You’re Last” – go where you competition will not go.

Enjoy the article and look forward to your comments.” – GC

The Case for Ending Sales Commissions By Dan Enthoven

Changes in the way salespeople work and the way their performance is managed could render traditional commission plans obsolete.

The New York Times recently ran an interesting piece about companies moving their sales teams from commission to straight salary. As the article noted, “To many in the highly competitive world of sales, such a move is tantamount to blasphemy.” I’m sure they also heard some stronger language that they couldn’t print.

Most people view commissions as integral to sales. Who hasn’t heard the cliché that salespeople are coin-operated? Besides, commissions must work–why else would they be part of every comp plan from selling chewing gum to jumbo jets?

The last 20 years, though, have seen tremendous changes in how consumers buy products, how people work, how sales and marketing operations are managed, and how people sell. With all that change, perhaps commissions have become obsolete.

Full Article: Inc.com

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