According to the Harvard Business Review, U.S. companies spend over $800 billion on sales compensation each year, which is three times more than they spend on advertising. Interesting, isn’t it? In fact, sales and compensation of sales people are often one of the top expenditures many companies make.
There are as many types of sales people as there are sales positions. Many have enjoyed a very handsome career indeed in the profession. The range of opportunities in sales is almost limitless, as are income levels, with some enjoying significant million dollar annual incomes. What is common to most every sales department, is that managers are on a continuous quest to drive better results, and better performance from individual sales people, and that is what this post is about.
If you’ve spent a part of your career in sales, or the better part of your career in B2B sales, as I have, then you’ve witnessed the usual perks and incentives that most organizations use in the hope of motivating more sales people to produce more results.
If you’ve been around as long as I have, then you’ve also witnessed the usual menagerie of “programs” that management employ to generate more results from more people. And if you’ve done that, then you have probably noticed a fairly consistent theme, the material reward, the reward that one way or another, has a monetary value.
This of course ties into the generally accepted mantra of senior sales leaders; that sales people are motivated by money. Offer them more money, and you’ll get better results.
For those that follow this blog, you’ll recall that I have posted on similar themes in the past (Blog #68 Sales Blitzes and Contests, Why They Don’t Work, comes to mind) but the real intended meat on the bone of this post is to expose the myth that all sales people are motivated by money.
While it is folly to suggest that one solution is appropriate for all, some generalities may be drawn, and one of those is that the top 10% of any sales force needs no further incentive, and the bottom 10% are probably not worth the effort.
This leaves us with the “middle” 80%, the core if you will, the people that show up each day, put in an honest but perhaps not huge effort, but represent the bulk of your sales and even more importantly, the group with the most potential to drive the most incremental sales.
So, this middle percent group, this group of core producers, what makes them tick?
Typically, these are not the people that have responded favorably to common enticements. This group is ordinarily satisfied with meeting quota, earning their expected income, and going home. If you think about it, you also probably realize that this same group of people don’t often express any passion or tangible evidence to earn that extra buck. If this makes sense to you, then the conclusion is obvious, material incentives won’t do much to motivate this type of sales person.
The solution to exciting this kind of sales professional lies not in throwing more money at them, but stepping back and better understanding what these people identify with and desire beyond money. What can you offer this type of person that will inspire them to put in the extra effort?
To better understand this, you need to start by understanding that sales people are people first, and sales people second. You need to let go of the myth that all sales people are money hungry.
As people, they too experience the same challenges and desires as anyone else, and at the risk of sounding like an arm chair therapist, it would be well worth the time of sales leaders to ask themselves, “What else could be more important than money to a sales person?”
While monetary gain or financial achievement is dear to many, others are better inspired by incentives that feed the soul vs. the pocket.
So, in no particular order, I offer the following.
- Recognition ~ Recognition can be a powerful incentive to those who yearn for it, but the demonstration of recognition is what counts. A pat on the back, or a good word within the confines of a year end assessment or one on one meeting while nice, falls considerably short of that recognition being pronounced in a meaningful way. Proclamations that reach a wider audience, and in particular an audience outside the expected group, are great ways to deliver a tangible reward. Think of an announcement in an industry publication for instance, or perhaps the business section of a news paper.
- Acknowledgement ~ While it is generally assumed that a monetary reward acknowledges an accomplishment, It may be ineffective to the person who is comfortable with their current financial circumstance. Acknowledgment can be expressed and demonstrated in ways that don’t require money, but rather thoughtful gestures or declarations of one’s achievements. It could be a dinner with the company CEO that includes spouses. It could be an honorable mention at an industry gathering.
- Family ~ Although most sales professionals care about themselves, what they most likely care about even more is their family. Do they have a family? Do they have children? While the whole “vacation” thing has been done to death, what often misses consideration is what value does a vacation as an award offer beyond a chance to get away. The very same sales person, who may lack motivation to work harder for personal gain, could well be the person who becomes inspired to work harder to reward those close to them.
Most vacation incentives are typically trips for one or two people. “Bring your partner” is a popular theme. Why not consider offering an incentive trip that is for an entire family, perhaps four or five people? What about a trip for the employee’s parents? And instead of the usual trip to Disney land, why not offer something unique. Use your imagination. How about a three day trip to Dinosaur Ridge, in Morrison Colorado, home to some of the best-known dinos, including Apatosaurus, Diplodocus, and Stegosaurus? What kid wouldn’t love hunting for their very own dinosaur?
Not your family’s cup of tea, how about the Kennedy Space Center in Florida, or a private yacht charter in the Caribbean for the winner and their family?
While these three examples of possible sales incentives are just that, three, don’t for a minute doubt that the possibilities are endless. Use your imagination, and be observant. Make note of how different sales people spend time outside of work. Get to know their passions, and their interests, and then build your incentives around them.
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