Rethink Your Incentives

Clients complain to me all the time about how their team isn’t winning enough new business. They’re hitting their numbers, they just aren’t winning enough new accounts.

I ask what the comp plan looks like…

“Well…”

When I get these complaints, I immediately stand up for the sellers. They’re not lazy, and they’re not subordinate. When it comes to what you want them to do and what you’re actually paying them to do, which path do you expect they’re going to choose?

If you want different behaviors, demand them. Then incentivize them. In the absence of the latter, the former is just confusing. That confusion leads to a disconnect between you and your team, and that’s going to wreck your culture.

The last time I checked, all the money spends the same, and the acquisition costs are much lower when you expand your business where you’ve already landed. 

With that said, if you don’t continually add new clients, your business will eventually face some challenges. If you’re really doing good work for your existing clients, then there are certainly other opportunities for you to grow, at least through referrals.

Put your money where your mouth is. Pay a higher commission percentage on growth. Run spiffs and promotions for new products. Run a contest this quarter for the number of new accounts opened (with actual orders).

It doesn’t really matter what the prize is. Cash is usually a good default, but remember that salespeople are more than just coin-operated. Be creative and come up with something that’s worth more to them than the money.

It needs to be clear to both you and your reps that new business is imperative. Come to an agreement in no uncertain terms on what the expectations are around opening new accounts, and then make them feel like their efforts will be rewarded. 

Otherwise, you’ll get more of the same, and nothing is more frustrating than when a leader and a seller are in disagreement about how valuable the status quo actually is.