Sales Manager Red Flag!

Management: "Great job last year. Since you exceeded your quota by so much, we're going to increase your quota this year by 20%."

Salesperson: "Great! Does that mean my compensation increases by 20% as well?"

Management (looking confused): "No, why would it?"

Salesperson: "But that means I'm actually making LESS commission on everything I sell."

Management: "Yep. Great job again last year. Let's do it again!"

YIKES!

This type of model creates:

👉 More turn-over
👉 Less hustling from the sales team
👉 Sandbagging

What can we do instead?