Lift (...by Seiko)

TIM HOULIHAN

Sales managers are a rare breed. Most organizations employ one sales manager for every six to 10 sales reps. Making it to the sales management ranks indicates you occupy a spot that roughly 90% of your peers have not. Congratulations.


 

Tim Houlihan

Sales leaders are always trying to figure out how to get the most out of their reps at the lowest cost, and incentives are excellent at revealing that sweet spot.  Finding the sweet spot for an incentive is like how Mama Bear’s porridge was juuust right.

ONLINE BONUS ARTICLE:  
Calculating the ‘Just Right’ Value for Incentives



 

Most incentives are paid out between 3 and 10 percent of the income earned during the incentive period. To figure out what the best amount of the award should be, consider starting with the midpoint of the average (7 percent) and make minor adjustments from there.



 
Tim Houlihan

Suffering from temporal construal? You and your reps probably are and you’re not aware of it.

Temporal construal is the way our brains think concretely about the present and vaguely about the future. The practical implications of temporal construal can impact the lives of your reps and the success of your business.

ONLINE BONUS ARTICLE:  
The impact of more immediate rewards



 
Tim Houlihan

Our brains love immediate gratification. Getting something today is better than getting it tomorrow, which is better than getting it next week. This is, in part, because of temporal construal. Having a concrete and immediate reward is better than a reward in the abstract sense.