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Towards a New Model for Inside Sales Motivation

Posted by Matt Bertuzzi on Tue, Jan 19, 2010 @ 01:59 PM
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Note: I've been thinking about this post for a while and the earthquake and it's aftermath in Haiti have really brought it top of mind.

Many Executives, and often Reps themselves, will describe salespeople as "coin operated". That's what the spiff model is all about, right?

  • Establish a goal
  • Run a spiff
  • Comp the winner
  • Shame the losers (?)

I recently ran into a post by Lilia Shirman over at Revenue Orchard where she asks:

Maybe sales reps don't operate by the same rules as all other humans. But I doubt it.  Would love to know for sure.  Anyone out there who's tried something other than a spiff to motivate sales?

For some time I've been thinking about that very question and how Inside Sales groups might integrate team based and even social / philanthropic giving into motivation programs.

The folks over at Green Leads have a really interesting program and I asked their COO,  Linda Flanagan, to share a bit of background.

-----

Linda, last year Mike wrote about the Green Leads team-micro lending project. Can you share how that got started?

Linda: Mike and I are big believers in the "green" thing, hence the company name, and we were out on the west coast with our good friend Christopher Lochhead.  He introduced us to Kiva and we were addicted.  At first, we opened a personal account and started making micro loans, then we came up with the idea of sharing the idea with the company.  It started at one Friday night weekly meeting at the local pub.  Mike said "If you guys contribute to Kiva, we'll match it!".  A day later we had a Green Leads lending team.
 

How does the team participate in the Kiva lending process?

Linda: Every month the team donates from their commissions.  We also allocate SPIFFs that are specifically directed to Kiva.   We then send around some links to specific Kiva projects and people choose.  Nothing formal. Just "I like this guy, he's doing a fish farm" or something.
 

What benefits have you noticed?

Linda: Most good comes from good...someone said that.  In our case, we've seen some of the most sales-quota-dollar-pinching-sales guys donating the most and being the most compassionate.  It's great.  We have one guy who used to be a wooden toy craftsman before getting into technology.  He asked to fund a carpenter.

The great thing about it all is that it's perpetual.  As the folks we loan money to pay it back, we can use the money again to fund another project.  It's an annuity.  It's a Green Leads fund of good will.

----

I absolutely love what Linda and the team are doing over there. Salesforce.com is also doing some great "integrated philanthropy" work with their 1/1/1 model.

Our 1% model is all about getting the most bang for the buck. We take just a fraction of salesforce.com's time, product, and equity, and give it to social-change organizations so they can amplify their impact.

We are in the process of building out a Bridge Group charitable project based on the Salesforce 1/1/1 model and we will keep you posted with what we come up with.

I'd love to hear from our readers on what you‘re doing. Please share.

-----

I'm sure you've already seen this, but you can donate $10 to the American Red Cross by texting Haiti to 90999.

(Photo credit: lightsight)

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COMMENTS

At the beginning of each year, our associates (that is what we call our employees) get together to decide which organizations they want to support that year. Our team is still deciding about 2010, but in 2009 our group supported some troops Afghanistan (one of our employees signed up for another tour and we sent packages to he and his fellow soldiers), helped the homeless by supporting the Seven Bridges to Recovery program (food, clothing) and wrapped up the year with a series of fund raisers (including the Twelve Cookies of Christmas - a cookie sale with the "goods" being donated by our and purchased by our team) for Partnership Against Domestic Violence. The company supports these efforts by matching funds and/or providing a lunch or event around the beginning and end of each effort. Our team loves the events and supporting the causes. In fact, a team member put together an emergency meeting for Haiti last week and we are “on it”. Thanks for inviting comment!

posted @ Tuesday, January 19, 2010 2:28 PM by Dan McDade


Whoops - meant to include this link to our community service page: 
 
 
 
http://www.pointclear.com/about-us/community-service.php

posted @ Tuesday, January 19, 2010 2:29 PM by Dan McDade


People use the selfish, coin operated and myopically focused tag on salespeople, VC companies, baseball players and everything they don't agree with :-) Like any broadbased rant, it is unscientific and inaccurate. There are always a range of attitudes and philosophies in any discipline that reflect on the individuals involved. I CAN COMMENT on Linda Flanagan, COO of Green Leads, who is a great business person, a great team member and a forward thinker. I am qualified to say that because she helped me build a $100M company ten years ago :-)

posted @ Tuesday, January 19, 2010 4:18 PM by Dan Tyre


I congratulate all the forward thinkers, Green Leads and alikes, out there in the sales world. 
 
As the co-founder of SalesCircles.org - the first member-led community of sales professionals worldwide - I can tell you that we plan to donate 5% of any good-deed revenues that we may generate to organizations like Kiva. We hope more sales entities will follow suit. 
 
Leslie

posted @ Tuesday, January 19, 2010 5:17 PM by Leslie Doan


Dan & Leslie, 
Thanks so much for sharing. Those are excellent programs and you given me some things to think about as we built out our internal project.

posted @ Friday, January 22, 2010 9:18 AM by Matt


I love these comments and ideas! I recently implemented a team-based commission plan and it is proving to be working very well. The leaders at the aa-isp have a tag line we use often.. that "people, not process are an inside sales organization's most important resource." Net-net, it means you cannot "metric your way" to good results. I wish more senior leaders understood this concept. Does it mean metrics are wrong? Of course not. Goals are good if they are meaningful and reps actually buy into them. Spiffs are fun and they can be a great short-term motivator. I have used them effectivley over the years. Having said that, I believe the sense of community, team-work, along with empowerment and a common, shared vision that the group can rally around is key to team synergy and ultimately fulfillment and hapiness. I believe happy, empowered reps are motivated and productive reps because they are recognized for making a difference. They feel they are part of a bigger purpose which is making a diffeence. Managers, take note: your inside reps are yearning to be recognized for the difference they are making... and not just the "coin" that they earn. They still feel lower in the "pecking order", despite all the positive strides our industry has made over the last 10 years. Make them feel respected, and worthy of praise. Invite senior leaders in to spend time with them. I intitiated a practice recently of having the COO or CEO ($1B company) take our team to lunch once a quarter. Helping others and volunteering can be a great way to build this type of team synergy.

posted @ Saturday, March 13, 2010 8:23 PM by Bob Perkins


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