Hacker News new | comments | show | ask | jobs | submit login

Sales commissions are the best way to maximize short term returns. Then your operational teams leave because they're paid much less but don't see why their work is less important, your clients leave when they understand the solution you sold them is not adapted and so on.

Tldr of the article: http://tldr.io/tldrs/512258d5ace532876b000003/eliminating-sa...

I think that salesmen always have gimmicks. Often, the best way to sell a product is to lie. Also having a sliding commission scale gives incentives to push sales through at whatever cost, just to get to the next tier of commission-- the difference is substantial. I've seen how this can lead salesmen to sell to fraudulent clients who use demo service or products (at a cost to the company) Reducing or eliminating tiered commissions can help. If possible, applying penalties to salesmen who don't conduct due diligence to verify clients' identities, or penalties for cancelling a service before rescission periods end could help, too.

Yet, at the same time, I'm making a switch from tech to entrepreneur and I believe that sales is a lot about telling a story. In general, you have to make your clients believe your product or service is a great deal and that you don't make any money on the deal. (which is impossible)

So, how do you sell a product or service at a decent profit without becoming slimy? Or how do you run a company and give incentives (and disincentives) to employees that lead to both short and long term growth, customer satisfaction, employee satisfaction and sustainable profit?

Good question. I've come to believe the answer isn't a one size fits all. Most businesses (especially tech businesses) are businesses of scale. Short-term growth is especially important in the beginning of a company, but sustainable growth is the ultimate goal.

Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | DMCA | Apply to YC | Contact