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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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Why Do Salespeople Plateau?

You just hired a new salesperson who seems to be the perfect candidate to fill a gap in your team. Smart, driven, excellent at making contacts, this skilled new hire hits the ground running. You give the new employee a slightly larger territory, maybe a few more contacts. The new hire eats those up, too. The employee seems like he could be a top earner on your team, so you offer the amount of work equal to your top earner. Suddenly, you are met with resistance. In fact, the new hotshot’s numbers may have even fallen. Eventually the work flattens
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