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All of my employees were college kids who weren’t making commissions. I had to tap into their intrinsic motivation and communicate a common goal, all so they could understand the importance and value of their contribution. He co-founded Blue Wolf: a Salesforce consulting firm and premier partner. Sam’s Corner [27:30].
Why does a commission-based comp plan lead to lazy management? KD: More and more I believe Commission’s are played out. I believe commission plans lead to lazy management, where managers are hoping that the comp plan gets the behaviors that they want. Jeremey: Why does a commission-based comp plan cause lazy management?
They’re intrinsically just having their mind that they might not be in sales two, three years from now, which just makes them way more adept at taking on different functions in the company and, of course, eventually having a head of sales versus what’s otherwise common. They want to go into BizOps, they want to become a GM.
Does Bridget believe that you should pay sales rep commissions on services revenue? Should one pay the same or lower commissions on renewals? How does one structure commissions for the sales team with that in mind? Then I did a bunch of consulting to these amazing startups in Silicon Valley. Bridget Gleason: Yeah.
So I was a consultant before I started as an AE. I had some sales experiments experience before going into consulting after my MBA, but not sort of AE quota carrying type work. Like, I didn’t mind doing the deck because I had done lots of decks as a consultant or what have you. extrapolate those things out.
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