Great Leaders and Entrepreneurs know that Pay for Performance compensation plans are the better way to go because you get a better return on payroll with that plan.

Opponents to Pay for Performance say things like…

• The sales people will fight for customers.
• The customers will be annoyed.
• We will lose our team environment.
• This will no longer be a happy family.
• So and so pays for performance and their customers hate it.
• I won’t subject my customers to controversy.
• We’ll lose good people.

This list can go on and on, but I’m sure you get the idea.

The thing is there are two camps.
1) Those who are advocates for Pay for Performance and
2) Those who believe in keeping pay and performance, or lack of it, separate.

Why should this differ from the sales ‘team’?

It shouldn’t. It’s the same thing. All members of the team are supposed to be working toward the same goal or target.

In a business, the target is a certain dollar amount of sales and on the playing field the target is to score enough points (goals) to beat the other team.

So, why would anyone think that it is the right thing to pay more to the sports star…who may score or set up most of the goals or points… but that it is not the right thing to pay more to the star or top performing Salesperson who contributes the most in sales dollars toward the target?

We know the answer. It is because they understand that it would take powerful management…think ‘Coach’…to make it work.

That means, then, that weak management – weak leaders – cannot do it successfully.

In fact, you cannot manage in a Pay for Performance environment if you are:

• leading from behind
• afraid of your staff
• unable to apply proper management principles
• inconsistent
• unwilling to manage or confront difficult situations
• unable to hold people accountable
• unable to coach and train
• unable to lead by example
• not a good example

Skilled and strong leaders and entrepreneurs are able to handle a group of much sought after and much appreciated ‘sharks’ on the sales team even when some are bigger stars than others and, of course, that is going to be the case.

In fact, they’d say “Give me a group like this any day!” 

Strong leaders and entrepreneurs will ensure that customers won’t know what the compensation plan looks like. That is one of the cardinal rules.

The customer should not feel it or find any evidence, whatsoever, that there is a monetary incentive involved with their purchase.

But, what does this take? It takes good, strong leaders who consistently do the right things.

They watch, coach, support, direct, correct, discipline, set the example and become the loudest cheerleader.

The truth is, the really great performers know, intuitively, how to treat customers and how to get to the ‘yes’ buying decision.

They’re not pushy, rude, annoyed by delayed buying decisions, or trying to prove something.

They are just professional. And, they certainly deserve to be paid in accordance with their performance.

Here’s a quote I know you’ve heard before…

“A group of sheep led by a lion will defeat a group of lions led by a sheep.” Author Unknown

But, what is even better, and what exists in the Pay for Performance world, is

…A group of lions led by a lion will give you an amazing ROI!

So, are you going to be a lion or a sheep?