Here’s something that’s been on my mind for a while. Sales. Sales teams. Salespersons. I think I have an idealized view of how that should work. But maybe not a practical view. Here’s an example. I know of a sales leader – a really good guy. He works hard. He’s paid well. He knows his industry and knows how to bring in the business. Mostly, he’s great at recruiting good, experienced salespeople to work on his team.
But … I guess there’s always a “but”. He has a very transactional view of the world. In his sales world, it’s always about a commission. If you want to sell more of “A”, you have to structure your commissions so this salesperson will lean toward “A”. If you want this salesperson to also make a referral to another part of your company, he’s convinced there’s no way that will happen unless you pay a separate commission for that, too. I laughingly believe, in his view of the world, a salesperson won’t open the door for a young family struggling with 3 children unless you pay them a commission.
At first, I thought these individuals had an inherently different view of the world than I do. That they are transactional. Mercenary. Pay me. I really don’t care about anything or anyone except me.
But, I wonder if maybe the organization’s culture and strategy aren’t the real culprits, here.
Let’s suppose some fictional organization provides a service. For this discussion, let’s say lawn care. They might have slogans that they care about helping their customers have the most beautiful lawns in the neighborhood. They say that they truly care about their customers and will always go the extra mile. That it’s all about building long-term relationships. But, in practice, they never really differentiate. They show up and mow your lawn. Same as every other lawn care company who, by the way, also promises the same “unique” value proposition. We’re the tidiest. We’re the most responsive. We care more about your lawn. Yada Yada.
In that case, how could you possibly expect your sales team to be anything but transactional? They really have nothing to sell except their smile and price list. They know the company doesn’t have anything unique to offer. Oh, you might try to convince prospective customers that you’re special and unique. But your sales team knows better. They’ve been around the block a few times.
I’ve read that people will naturally do whatever they think is right – to help a customer or to help their employer. That’s human nature. But commissions distort this natural order. Commissions exist to persuade someone to do something that they wouldn’t otherwise do.
So – following that to its conclusion – if your sales are predicated solely on commissions, does that imply that your sales team wouldn’t otherwise be willing to promote your solution to someone? Of course, I’m assuming that you’re paying a good, competitive wage. But, shouldn’t they believe in what you do? Shouldn’t they work for you because they believe that your solution is the best way to help others solve some tangible problem?
If you’re unsure about whether your sales team really loves you and believes in you — or they just love your commissions — that’s a problem. Having the highest commission rates is a lousy excuse for a strategy.
Like I said at the beginning. I may have this all wrong. What are your thoughts?