article | August 20, 2011
Sales Compensation: Don’t Be Like Jerry Seinfeld
As the calendar year winds its way towards the fourth quarter, sales compensation planning for next year is looming on the horizon.
In my 15+ years of selling, I don’t recall a single time when my incentive plan was the same from one year to the next. Why? Because the unpredictability of top line revenue creates the need for “strategic decisions” to be made in order to hit the number next year.
Stop it. You are thrashing. It will cause turnover and lower morale.
There is a great joke Jerry Seinfeld tells about the nature of men when it comes to women.
“We like women. We want women, but that’s pretty much as far as we’ve thought. That’s why we’re honking car horns…yelling from construction sites. These are the best ideas we’ve had so far!”
Companies are a lot like this when it comes to comp. We haven’t thought far enough in advance to create compensation plans that align with corporate strategy and make sales reps happy.
There are 4 ½ months left in the calendar year. Don’t be like the guys in Jerry’s joke. Take the time now to objectively assess your sales compensation plans for next year.