March 26, 2010

Can you build a great sales team on salary?

As I advise companies on how to build effective sales teams, the topic of compensation looms as the 400-pound gorilla in the corner. This gorilla is a very opinionated fellow.

He’s distinctly of two minds.

On the one hand, he believes that in order to develop a committed sales team, a system of commissions that give top sales folks the opportunity to make lots of money is essential. The terms you hear are “uncapped,” “incentive-based” and “performance-based.” Under this scenario, a salesperson will only perform if there is a large carrot. This gorilla is deeply committed to the…

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