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Learning from Circuit City’s Mistakes - CE Pro Article from CE Pro
This is a mistake that companies make over and over again. People see how much their best sales people are being paid, often more than senior managers, and get annoyed and immediately demand that something is done about it.
So, when they don't do something as plain daft as Circuit City did, they will still muck with Comp Plans, put caps on commission payments and engage in other activities which throttle back on payments to the sales team.
The rest, as they say, is usually history.
As a person who has worked in commission paid roles for several years now (ok, more than 15), this pattern of behviour is both extremely familiar and also incredibly depressing. I hope that when I come to run my own business again, I'll remember that a well paid, well incentivised salesforce is the key to success in any business.
This is a mistake that companies make over and over again. People see how much their best sales people are being paid, often more than senior managers, and get annoyed and immediately demand that something is done about it.
So, when they don't do something as plain daft as Circuit City did, they will still muck with Comp Plans, put caps on commission payments and engage in other activities which throttle back on payments to the sales team.
The rest, as they say, is usually history.
As a person who has worked in commission paid roles for several years now (ok, more than 15), this pattern of behviour is both extremely familiar and also incredibly depressing. I hope that when I come to run my own business again, I'll remember that a well paid, well incentivised salesforce is the key to success in any business.
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