> Like the post says, when they're making lots of money, everybody else is making even more money.
I’ve worked with sales people whose compensation had loopholes you could drive a truck through, make sales that cost us more money than we made on the contract. Now a few of those are good for attracting VC money, but you have to be strategic and I’ve seen too much evidence of them not being so.
If you lock up your biggest potential customers with bad contracts that makes you default dead and no good way to weasel out.
A compensation plan that aligns incentives to address the principal-agent problem of sales representatives is probably necessary, but definitely not sufficient, to manage an effective sales program.
I’ve worked with sales people whose compensation had loopholes you could drive a truck through, make sales that cost us more money than we made on the contract. Now a few of those are good for attracting VC money, but you have to be strategic and I’ve seen too much evidence of them not being so.
If you lock up your biggest potential customers with bad contracts that makes you default dead and no good way to weasel out.