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Why do we pay sales commissions?
So we did it, and no catastrophes struck us. No earthquakes. No plagues, and no one quit. In the year since we dropped the commission system our sales have gone up. In fact, four of the last five months have been record months.
Fog Creek describes the pitfalls of paying salespeople commissions, but misses my favorite argument: Commissions give salespeople a skewed value system. Sales is an incredibly important (and often overlooked) part of your user experience. By telling salespeople that a sale (and revenue, to a further extent) is their ultimate priority, they put customer experience second. It is a problem akin to dark patterns in UI design: By only testing the quantitative and not qualitative, you run a significant risk of slowly and quietly killing your brand.
Absolutely fascinating.
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This is the battle we have been fighting since the beginning, between the good vs. the evil. Not pure good, not pure...
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montywest said:
GREEEEEDY! “In the year since we dropped the commission system our sales have gone up.” Meanwhile, your employees starve. This kind of thought will create a lot of poor people and a few rich ones.
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idlewyld reblogged this from 9-bits and added:
Absolutely fascinating.
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jessicacohn reblogged this from 9-bits and added:
A very interesting read for anyone whose livelihood is entangled with a team of sales people succeeding or failing. This...
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