Live Better. Sell Better.

A Simple Comp Plan Makes Everyone Profit with Dan Goodman

Jan 6, 2023

37:23

This episode of the Live Better Sell Better Podcast features Dan Goodman, Founder, and CEO of TruCommish. The conversation about a seller's comp plan should be simple and transparent, with computations upfront, to meaningfully drive certain behaviors.

Otherwise, compensating on variables other than the sale itself will just create unnecessary clutter that makes it more difficult to pay sellers, a key factor in retaining top talent. Dan also stresses the need to give employees access to the data. Not doing so creates distrust and can even expose companies to legal action.

HIGHLIGHT QUOTES

Make comp plans simple and data accessible - Dan: "It's not so much the variables. Obviously, the fewer, the better, and the more simplistic it will be. But as long as you have the reporting and it's easy to understand and access and the calculations are at the forefront or easy to back up, then I'm okay with somewhat complicated comp plans to drive certain behaviors and incent reps in a certain way."

Compensating fairly means leaders have a longer-term view of the company - Dan: "What I would really recommend to leadership is to take more of a longer view. I mean, there's so much pressure on the month-to-month and quarter-to-quarter performance, I think that's what's driving all of this really bad behavior by leadership. They're trying to earn their bonuses, they're trying to keep their investors happy, they're trying to pump up their sales in the perception of what things look like."

You can find out more about Dan and get their app in the links below: