Yesterday I shared why sales reps hop between jobs so frequently. Now let's discuss how to fix it! 💡
Recap: Commissions decrease, quotas increase, territory shrinks, more internal red tape.
Some of these changes are inevitable as a business matures. That which got you here, won't get you there. The most famous examples of this are Slack and Atlassian. Both companies loved to pander by saying "We have no sales team!!"
Then both hit the reality of selling to enterprises... and built massive outbound teams. 😂
Reality of the market always wins.
So what can a company do to avoid turnover during periods of change?
1. Honesty - Be completely honest with the sales team about why you are making the change. Tell them "Our board is putting pressure on us to hit this % margin, so we need to change the comp plan." Earn their trust.
2. Benefits - As it gets harder to sell, enable them to sell more! "To counteract this, we are investing $100K in enterprise sales training this year. Every month, we will level you up."
3. Equity - Give more equity to your top reps, so they have a financial incentive to see the company succeed. "In return for a lower commission rate, here's additional shares so you benefit from our profitability."