Is Sales Compensation All About Showing Them the Money?

Posted by Marlon Tang on Wed, Jul 26, 2017

"Show me the money!” Many are familiar with that memorable line from the movie Jerry Maguire. But really, how effective is “showing them the money” with respect to sales comp design? Do large bonuses, commissions and monetary rewards make as much of an impact on behavior as we believe they do?  


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Incenting Inside Sales

Posted by Chad Albrecht on Thu, Jul 13, 2017

In decades past, a salesperson was a salesperson. The role was responsible for finding prospects, turning them into customers and selling on an ongoing basis as they manage accounts. But that model is on the decline as companies find it ineffective for large accounts and too expensive for small accounts.


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Quotas and Territories: Don’t Tackle Incentives Without Them

Posted by Chad Albrecht on Tue, May 23, 2017

This article was originally published in World at Work’s Sales Force Focus e-newsletter.

The sales comp plan did it.

In the world where sales targets are missed, the sales comp plan is one of the usual suspects—or the assumed culprit.


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Car Washes and Payout Curves

Posted by Mike Martin on Wed, Jul 06, 2016


In 2004, Joseph Nunes and Xavier Dreze conducted a study at a car wash. For two weekends, they handed out 300 loyalty cards where customers would earn a stamp on their loyalty cards each time they purchased a wash. One hundred and fifty of the cards offered a free car wash after eight paid washes. The other 150 cards offered a free car wash after receiving 10 stamps, but two washes were already stamped. Both required eight additional purchased car washes to be eligible for the free wash, but the results were strikingly different: The redemption rate for those with the option to buy eight and get one free was 19%, but the redemption rate for those with the option to buy 10 and get one free—with two washes already accounted for—was 34%.


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