Set baseline quotas in your compensation plan at or above breakeven, not from zero sales. Volume-based bonuses that pay from the start can drain cash before the company reaches profitability or growth targets. Tie incentives to installed revenue, net sales, or appointments to align your team's rewards with actual business health.
Common mistake. If you do have volume bonuses in your business, do not pay your people from ground zero. It's nice of you, but why would you pay them when they're not— when you may not even hit your breakeven or growth? So really good comp plans are going to at least have a baseline quota, whether that's installed revenue, whether that's net sales, whether that's issued appointments, whatever it is, define that baseline quota at least at your breakeven point. But what I would challenge you to do is define it at a higher point of where you want to grow.
