Even if on the surface everything seems to be working, there are a lot of downsides when the traditional commission model is fully played out. Most notably, it can breed hypercompetition and egoism and incentivize making a quick buck rather than ensuring that customers and the business are successful in the long term. There is a different model that aligns short-term business goals without neglecting long-term customer relationships. It’s based on vested commissions. Rather than focusing on rewarding salespeople immediately after a transaction, vest the commission over time so your sales team
...more
