I just had dinner with four really successful business owners—all running businesses bigger than mine—and we got talking about sales compensation plans. Once I started sharing things I honestly take for granted after 20 years in sales leadership, they were like "we hadn't thought about that." These are very smart, very successful guys, just not from the sales world. So if they found it helpful, maybe you will too. Here's the foundation: the only purpose of your comp plan is to change behavior. Charlie Munger said it perfectly: "Show me the incentive and I will show you the outcome." This episode breaks down three critical comp plan mistakes I see constantly: (1) Long-term commissions that look generous to you but don't change behavior next week because salespeople don't think like business owners—they think in cash, not equity or 36-month payouts, (2) Perpetual residuals that create permanent misalignment as your costs go up while their incentive to do the hard work (hunting) goes down, and (3) Having hunters farm instead of separating the roles, which misallocates both money and results. Learn why you need to reward behavior closest to when it happens, why saying "I'll fix it later" is fucked up, and how to align effort, difficulty, and value with what you're actually paying for.//Welcome to Repeatable Revenue, hosted by strategic growth advisor , Ray J. Green.About Ray:→ Former Managing Director of National Small & Midsize Business at the U.S. Chamber of Commerce, where he doubled revenue per sale in fundraising, led the first increase in SMB membership, co-built a national Mid-Market sales channel, and more.→ Former CEO operator for several investor groups where he led turnarounds of recently acquired small businesses.→ Current founder of MSP Sales Partners, where we currently help IT companies scale sales: www.MSPSalesPartners.com→ Current Sales & Sales Management Expert in Residence at the world’s largest IT business mastermind.→ Current Managing Partner of Repeatable Revenue Ventures, where we scale B2B companies we have equity in: www.RayJGreen.com//Follow Ray on:YouTube | LinkedIn | Facebook | Twitter | Instagram

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