Should I Cap My Salesperson’s Earnings?
Sales leaders have occasionally expressed to us a preference for capping a salesperson’s earnings. The reasoning for such a decision typically goes “My salespeople shouldn’t be making more than me.” Although we are not a sales compensation firm, we do know quite a bit about personality and how high-drive salespeople react to such a policy. Here is why that approach can be dangerous . . . Salespeople high in Drive, particularly need for achievement, are motivated by excellence . . . constantly raising the bar for themselves and their performance. Although money is not their goal in and of itself,
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