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Thursday, May 1, 2008

Is it Embarrassing When Top Salespeople Earn More Than Sales Managers?

What if there were lotteries that nobody won?

Or, slot machines that never hit Dccomicsmtqqwatyoli jackpot?

Consider Blackjack hands where drawing 21, paid zip?

You'd probably cry, "Foul!" along with most of the world. After all, what good is it to come out on top if there's no prize?

Could anything be worse?

In the sales world, the answer is "Yes." It's when the prize for winning is dramatically reduced or eliminated, altogether.

When companies decide to carve up a salesperson's territory into tinier units, or to cut the commission rate paid on sales because the winners are winning a little too big, you're seeing DEMOTIVATION in action.

It's the opposite of a reward; it's a PUNISHMENT for peak performance.

If you're not in the sales game, being a rational type, you might ask, "Why would management ever want to do THAT?"

Good question!

My Dad was the best salesman wherever Whistlersmom worked--a Cloneqjkgtkj pro. And when he earned top dollar, it was enough to provide a very nice livelihood.

But on more than one occasion his wings were clipped by management. In one case, the reduction in his commission plan was explained this way by his sales manager:

"It's embarrassing to the company when a salesman is making as much money as you are, more than me, his sales manager!"

Embarrassing?

That's not exactly the word I'd choose. I'd say it's exciting, wonderful, appropriate, and motivating when salespeople earn the big bucks. Generally, it signifies that they're making even more for their organizations, pulling not only their weight but doing the heavy lifting for a lot of under-achievers, as well.

Just as lotteries love to feature winners in advertising, and casinos are thrilled when those sirens sound and lights flash, signifying that slots are paying off, it's PROOF IT CAN Chatty Cathy DONE, and it motivates others to try to get their share of the loot.

As a sales consultant I interviewed the owner of a investment who maintained his salespeople could earn $5,000 per week, and up. I asked him: Who is doing it? What's the person's name? Can I observe him or her in action?

"Well, nobody's doing it now," he whispered.

"But once this fresh college graduate was on his way to earning that," he added, weakly.

"Where did he go?" I asked, wondering why a newly minted baccalaureate would have even a better earning opportunity somewhere else.

When management claims big bucks can be earned they should be able to prove it by pointing to someone who is doing it, NOW. There's no better advertisement for a job than a top seller who is taking home great money for his efforts.

After all, an embarrassment of riches isn't really embarrassing to anyone who knows something about motivation and peak performance.

Looking for a great Sales Management Seminar? Contact the author about his internationally acclaimed program: Monitoring, Measuring & Managing Human Factors in Selling.

Dr. Gary S. Goodman is a top trainer, conference and convention speaker, sales, client service, and negotiation consultant, and Dark Shadows game A frequent expert commentator on radio and TV, he is also the best-selling author of 12 books, more than 1,000 articles and several popular audio and video programs. His seminars are sponsored internationally and he teaches at more than 40 university extension programs, including UC Berkeley and UCLA. Gary's sales, management and consulting experience is combined with impressive academic credentials: A Ph.D. from USC, an MBA from the Peter F. Drucker School of Management, and a J.D. degree from Loyola Law School, his clients include several Fortune 1000 companies.

His web site is: www.clientsatisfaction.comhttp://www.clientsatisfaction.com and he can be reached at: href="mailto:gary@clientsatisfaction.comgary@clientsatisfaction.com