How to Structure a Commission Plan That Motivates Without Creating Chaos
You look at your sales tracking board and see a massive new contract. Your lead representative just closed a deal that will supposedly double your revenue for the month. You feel a brief moment of intense relief. Then you actually look closely at the details of the agreement. The salesperson promised an incredibly tight, entirely unreasonable deadline. They included specialized services your operational team rarely performs. They gave the client a massive twenty percent discount just to secure the signature today. You feel a sudden surge of anger toward your employee. You call them into your office and berate them for their total lack of operational awareness.
The Hidden Cost of Every Discount You Give
You sit across the desk from a hesitant prospect. The deal hangs in the balance. The client reviews your proposal, leans back in their chair, and asks for a small price reduction to sign the contract today. You feel the anxiety rise in your chest. You need this revenue to keep your technicians busy next week. You want to close the file and move on to the next fire burning in your office. You cave. You strike ten percent off the total and shake their hand. You walk to your truck feeling like a master negotiator. You secured the revenue. You kept the engine running.
The Hidden Cost of Every Discount You Give
You sit across the table from a prospect. The deal hangs in the balance. The client reviews your proposal, leans back in their chair, and pushes back on the price. You feel the anxiety rise in your chest. You need this revenue to keep your technicians busy next week. You want to close the file and move on to the next fire burning in your office. You cave. You offer a ten percent discount to get the contract signed immediately. You shake hands and walk away feeling like a savvy dealmaker. You secured the work. You kept the engine running.