How to Screw Your Customers

Say your have a traditional commission structure for your salespeople:

1. 'You get commission per sale.'
2. 'You get bonuses if you sell more.'

What's the issue?

That incentive system promotes the let's-screw-over-the-customer-and-do-anything-to-get-the-sale mentality.

BOO.

That is, if the seller doesn't sell, the seller doesn't get paid -- and so, s/he will pitch shoddy products even if clients don't benefit from those products.

1. Yes, short-term sales may rise in the short-term.
2. But, pitching and selling shoddy products destroys long-term/repeat sales (i.e., an unsatisfied client who buys crap products won't return, and won't send referrals), viciously decreasing the value of your company.

You end up with S.U.C.K.

How to Align Your Incentives

Align sales incentives that mutually promotes a win/win relationship between your company and your clients.

You'll start build long-term value for both parties.

McKinsey, for instance, only promotes those who consistently increase their customers' bottom-line.

A bad pay structure on its own:

1. 'You get commission per sale.'
2. 'You get bonuses if you sell more.'

A better pay structure that promotes win/win:

1. 'All sales come with money-back guarantees.'
2. 'You get commission per successful sale, meaning you get the commission if the client is 100% satisfied with the purchase after X days/months.'

COME UP WITH YOUR OWN YAY

Win.

Win/win incentives.

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