Mark Osborne explains why most sales compensation plans fail to drive real motivation. The problem: commissions reward maintaining baseline performance instead of pursuing growth. A better structure ties a significant portion of pay to higher-growth activities.
You have to define a growth plan. And then how do you incentivize your people so that you put a significant portion of their commissions on doing that growth between 5 or 6 that is more difficult than doing— to keeping the baseline, right? That's right. So if that doesn't exist, then the second aspect doesn't exist.
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