Dan Ostlund of Fog Creek Software:
Removing commissions has changed the sales team. It has taken their focus off their compensation. They have all that administration time back for more useful things. They take a longer view of the value of a prospect, and are less worried about who is going to buy right now. They feel less stress about taking vacation. They don’t quibble among themselves over accounts. And best of all, they feel more integrated with the company.
As John, one of our salespeople said, “It’s made the team better. It’s removed the ‘me, me, me’ mentality. Now I want to share information with everyone on the team, and everyone is willing to pitch in because it doesn’t hurt me to help my colleagues.”
I’ve worked in two commission-free environments, Best Buy and Apple Retail. They were two very fun retail environments, where I felt incentivized to just help people, instead of screening customers to pick out which ones would end up in a sale.
You have to assume people are inherently self-motivated.