What’s really driving your salespeople?

This article first appeared on September 16, 2011

Long lasting, self-motivated and purposeful salespeople are the cornerstone of an outstanding sales model. Sadly, a large percentage of salespeople never stay employed at a company long enough for both the company and salesperson to reap the full rewards of their tenure.

Many years ago I worked for an ad agency. This agency paid BDM’s above average salary but provided no incentives for performance. In contrast, a number of years even earlier, I worked in sales for a large insurance company on commission only. Both of these companies had different remuneration models, yet produced the same outcome for me: I wasn’t inspired to be there very long.

A high base salary generally promotes high performance, for a period of time, before salespeople realise there’s no real benefit in pushing too hard. As for commission only salespeople, we all know what ultimately drives them, their behaviour is always predictable: no sell, no eat!

When you sell from a place of need, which is where most commission only models take salespeople, “the sell” takes precedence above all else. In this state salespeople are more willing, despite their logic, to engage in deceptive and self-focused behaviour to achieve their desired outcome.

So what model works best for salespeople; a high base salary, rewarding commissions, or both?

The answer lies within the motivators inherent to each individual. Research suggests monetary incentives decrease creative performance but often increase menial task output. The ad agency subscribed to this theory, yet still struggled to retain quality people. The salespeople weren’t being challenged in meaningful ways combined with no real incentive to work hard to achieve more.

At the insurance company, the daily grind of commission only was something desperate salespeople were willing to endure for a short period of time. Nearly all quickly suffered call reluctance and succumbed to emotional burnout. Most moved onto to a role with another company with more fiscal stability, thereby taking all IP the company invested with them to their new employer.

Should you incentivise your salespeople with a healthy reward structure?

I think so, but not just in monetary terms. High performers can be ambitious and seek regular validation and recognition for results. Some want to play a part in creating something special. Purist Type A’s want autonomy and to own what they do and are willing to work hard to achieve it. Others love the hunt and thrill of the chase, but avoid risks or responsibility. In short, salespeople are multi-coloured and faceted creatures. All should be outcome driven, yet how they get there can differ.

It’s true, many salespeople are motivated by money, to a point. In my experience nearly all salespeople are content when they can pay bills and see a financial path to prosperity before them. Selling something they believe in is also essential. And they all talk, so most conscientious salespeople know their value and what they’re worth somewhere else. So pay them just above market rate and take the time to understand what’s really motivating them before designing their package.

You just might be surprised – it’s not all about the money.

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Trent Leyshan is the founder and CEO of sales training company BOOM! As a sales expert and facilitator, he partners with some of the world’s most dynamic and demanding sales driven companies. Trent is also the founder of salesprocess.com.au and the author of THE NAKED SALESMAN: How to walk the talk and sell your way to success!