Most studies show we are 2x more loss aversion motivated than gain motivated.
So here is a random thought I had.
What if... (my managers love it when I start off a sentence like this)
What if instead of paying commissions at the end of the month, like normal, dangle the carrot (which by the way doesn't really drive as much behavior as we think)
You were paid 100% commission on the 1st of the quarter.
On the 31st of each month/quarter, the amount you missed quota by was DEDUCTED from your account.
So you have the money for a month/quarter already.
You feel like it is yours.
You don't want to LOSE it.
You probably even spend it a bit.
Would that change behavior faster/motivate people to do more?
Very curious on people's thoughts on this.
- Yes there is still over performance bonuses/commissions, even had the thought of depositing MORE than 100% commission.
- I know there are some nuances to figure out, don't get caught up in the how. It's the concept I'm curious about.
What do ya'll think?!
This PSA (public sales announcement) was brought you by Morning Walk Thoughts by KD