That is the cancer that is more common than you think in owners of companies minds who started the company from nothing and did the sales for it until it got bigger and they moved into just managing it. These people look at a salesman making $200,000 a year and think that something is wrong here, because when they did that job they capped out at $90,000. They know what the industry average is for that position and start thinking they are overpaying, because they are falsely comparing industry averages with an exception persons abilities. They start changing pay plans to react to their top producers. The top producers usually are so good that even after the pay plan is cut they work smarter and harder and are right back at that $200,000 within a year or so even at the reduced commission sturcture. Then of course there is a whole new round of readjustments.Grumpy said:I have talked to a few old timers who have been fired because they were top producers and ended up making more money than the bosses. In my opinion you pay a guy like that more so he will produce more, because for every penny he makes you bet I am making more money too.
TimWieneke said:30 and 50 thousand dollars plus commission,
Sorry dude, that is a huge generalization based on a specific example.Grumpy said:Salary breeds laziness in sales. Just like unions breed laziness in production.
Obviously I recognize that sales compensations vary from home improvement to refurbished business machines. You're trying to compare apples to oranges.Grumpy said:We are either talking about different industries...
Question...do payplans that are based on the 'norm' get you talent that is on par with the norm or do they get you premium talent. It would seem to me that the 'norm' = run of the mill and that really talented guys are looking for the latest, greatest, most innovative compensation packages. Am I wrong?Mike Finley said:If the norm for Chicago roofing salespeople is 100% commission you will certainly have no trouble getting salespeople to work for you with the same pay plan.