Compensation is No Substitute for Leadership

It tends to be the assumption: Salespeople are motivated by money.

So, give them the right package and great sales numbers will result. Right? But often it only leaves sales managers scratching their heads and wondering how to make the package more enticing - to motivate the staff better.

Sadly, that type of thinking usually results in lower sales figures than you'd like and higher costs to your business in the form of higher sales rep turnover.

Compensation, no matter how attractive a package is never a substitute for good sales management. It cannot take the place of strong training and a basic understanding of human behavior.

Often, business owners and sales managers feel that since salespeople are motivated by money, the sales person will do everything (or anything) in order to close the sale. But selling can be very tedious and depending on the product, long and drawn out. It can be hard to keep sight of that end commission while you're getting the run around for the 20th time or having to meet yet another "decision maker".

It's up to the manager to make sure that the sales rep has all the tools necessary to be successful in the job. It's up to the manager to make sure that the sales rep remains motivated. This is particularly true in cases where the compensation is primarily in the form of commissions. See, here's the thing... you may think you've got the best product/service on the market but many are things outside of a sales rep's control.

Sales can be hard on a person, with rejection, customer demands and sales goals to be met. It can be hard to sustain excitement and motivation simply through a compensation plan when the payoff may be far off. Strong managers - strong leaders - make sure that their people have all the tools they need to succeed. They are available to brainstorm solutions, they are pro-active in positively motivating their people and coaching them on a regular basis. They make sure the sales force is given the sales training necessary to be successful.

Yes, a good compensation plan can help turn a hum drum sales force into a supercharged selling machine. But it is only a part of the equation. Compensation is no substitute for your leadership.