Hi Friends, Here is your end-of-the-week insight into what I see going on in the business world,...
Hi Friends,
Here is your end-of-the-week insight into what I see going on in the business world, what I’m thinking about, and what I’m learning about. Forward anything that you feel inspired to share. If this was forwarded to you and you found value, subscribe here for a weekly edition!
What I’m Hearing From Sales Leaders/Professionals
This week, I have spent time reviewing commission plans for 2025. If you are in the process of creating or finalizing the plans for your team, here are a few things to think about:
1. What is your goal? Yes, we all want to close deals, but is that the overall goal of the business, or is it fast closes, larger deals, profitability, more SKUs, longer contracts, etc.?
2. Are there certain products or services that are more important than others in your portfolio?
3. Are there products or services you want to deemphasize?
4. When is the earliest it makes sense to pay some, if not all, the commission?
5. At quota, can a rep make their OTE number? (You would be surprised how often this is not the case.)
6. Given your current pipeline plus your Opportunity Generation Cycle and your Sales Cycle, is there enough time for the plan to be real?
7. Given your current tech stack, your current required meetings, vacations, or days off, does the rep even have enough time to achieve the plan in a reasonable manner (not 100-hour work weeks)?
8. Etc., etc.
The reality is that many plans are put together with good intentions but not much deep thinking. I am not saying that they are haphazard; what I am saying is that a commission plan requires a lot of DEEP THINKING.
Remember, a commission plan is nothing more than an exercise in behavioral economics and human psychology. You are trying to influence the behaviors and decision-making of other humans, both rational and irrational. In order to do so, you need to think deeply about what you are really saying with the plan. Keep in mind that the commission plan serves as the marching orders for your team.
So, in addition to the questions above, you have to ask yourself the following:
1. If I were reading this plan, what would I think was important?
2. If making the most amount of money was my motivation (news alert—it isn’t always) what actions would I take to maximize this plan?
3. Does this plan work for me if making the most amount of money is my goal, or does it cap my earnings? And what happens to me once I have reached the cap?
4. Can I clearly explain how someone hits their OTE with the plan? (This is the question that is missed most often.)
5. And finally, how would I game the plan to my advantage?
I know there are dozens of other questions you can ask yourself as you review your plan; the key is to ask them. Too often, I review plans where it’s clear that they have been created with only one view in mind (could be company, rep, VP). It’s important to put in the time and effort to create a plan that is motivating and aligned with company goals.
If you want another look at your plan because you are not sure it aligns with the interests of all parties, send me a note!
What Made Me Laugh
I love to eat. I also want to fit into my clothes. I don’t think a tweet has ever captured my relationship with food better than this one. (Also, love the ad right underneath it.)
This Week’s 40/20
For every 40 hours of work, I believe you should spend 20 (additional) hours mastering your craft. This is how I spent some of my 20 hours this week.
I don’t know how factual this list of most popular Christmas Dishes by State (research conducted by a random restaurant) is, but it will at least give you something to talk about with your family members. Also, Hawaii’s (Kalua Pig) and Illinois’ (Deep Dish and Italian Beef) dinners sound amazing! I am having a traditional Iowa dinner this year. How about you?
Potpourri for 800
Potpourri (shoutout to Jeopardy!) is a category that covers a variety of topics.
It’s Christmastime, thus time for the annual debate—is Die Hard a Christmas movie? The answer is yes. Don’t believe me? Read up on the symbolism of the wife’s watch in the movie. Die Hard is basically It’s a Wonderful Life with guns.
In the tradition of violent Christmas movies like Die Hard and the more recent ones like Fatman and Violent Night (both so good), Netflix released Carry-on. If you want to enjoy a good popcorn movie at home, I recommend it. Jason Bateman is awesome in it! The movie is slow for the first five or so minutes but quickly picks up speed.
If you like more traditional movies, then watch the Hallmarkesque Our Little Secret with Lindsay Lohan. Being that Mean Girls is one of my favorite movies, it is no wonder I enjoyed Our Little Secret.
Quote for My Son
Every day, I leave my son a note with a quote. This was my favorite from this past week:
“No fate but what we make.” – Sarah Conner (Linda Hamilton), The Terminator
You can get weekly helpful information for sales professionals by following my company’s Maestro Mastery blog here.
Let me know what you think about this week’s edition of Fuentes Fridays. Which section was your favorite? How can I make this better? Shoot me a message on LinkedIn @willfuentes.
Until next week!
Thanks,
