no commissions. no quotas.
Graham Hawkins: Founder, CEO, and Bestselling Author @ SalesTribe
1. Commissions and quotas are a lose-lose scenario: for the consumers who regret buying after a hard sales push; and for desperate sales reps who are caught between losing customer focus and losing their jobs.
2. Buyers are aware of everything now. They know self-interest drives salespeople with commissions and quotas, and they know they have more reliable sources of verification in trusted referrals.
3. Initial sale values are declining. 70% of customer lifetime value is now generated post initial sale.
4. KPIs tied to net promoter scores (NPS), retention rates, and other customer-centric metrics are more sustainable alternatives to traditional quotas.
5. Rewards that encourage employee fidelity, such as company equity, can prove stronger incentives than traditional commissions. Many companies, including AWS, are adopting this strategy to encourage positive sales behavior and reduce employee churn.
6. The pendulum has swung to the buyer. And it's not coming back.