If you hire your first two sales reps in your startup, do not tie their commission to individual targets You have absolutely 0 idea what those targets should be And it will be massively discouraging What I did instead: In the first 9-12 months, we set a quarterly target for the whole team (incl. CRO, CEO, partners) We sit together end of quarter to discuss the target for next quarter It is usually a mix of pipeline and ambition So that we definitely believe we can achieve it based on pipeline And the target is ambitious at the same time Whatever percentage we reach of that target, everybody gets as commission At the same time, we do calculations of how many opportunities everybody needs to open and how much weighted funnel we need for next quarter Those numbers we set as soft individual goals We need to have those top of mind And still track individual success So that we know what to work on if we don't make it
Nice take Patrick Trümpi. Do you have an idea of when you'll move to more individual targets?
Faires System 💪 Würde Sales immer erst einstellen, wenn es einen proof of Sales gibt. Damit hatten wir immer die besten Erfolge 💰
Helping, and making it happen with belief as a team to achieve. 😀
That's smart! Tying commissions to unrealistic numbers can be risky and demoralising when the targets are just ambitious goals made out of thin air.
That's a unique approach. I like it in theory. How do you avoid people bickering with each other, i.e., "you didn't do this that's why we missed" etc.?
I love the team spirit, but how would you deal with a situation in which a rep is hungry as hell, and another one from the team is not working at 100% Patrick?
100% agree. I made that mistake once and will never do it again. However, with VCs breathing in your neck and wanting to see massive growth numbers, many companies tend to promise too much....
Agree. In early stages I also suggest considering retention targets. This encourages focus on selling what sticks long term, before ICP is fully clear
You had me at “we sit together…” 👏
Payments Specialist 📱💳| Selling The Best Payment Solution in the UAE | Financial Technology | FinTech & AI News in Arabia & Globally
3moSimple yet effective, why do you think other organizations don't apply this?