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Here’s the short answer to that question: At the expansion stage, the more you can leverage compensation to results, the better off you (and your sales team) will be in the long term.
Commission or bonus-focused compensation plans provide tremendous upside for growth and allow CEOs to truly leverage their people — all while those people are given ample opportunity to make significantly more money than if their income was largely dictated by a fixed salary figure.
Simply put, if your compensation plan is largely tied your sales organization’s ability to achieve specific objectives and targets, then everyone will be incentivized to perform the kinds of revenue-driving activities that yield those results. The value that you place on certain performance measures will vary, but the idea is to create an environment that rewards urgency and provides upside for over-performers.
Ultimately, that model won’t just help you appeal to (and retain) A-level sales talent, it will also make it easier to scale because your up-front investment in additional sales headcount will be less expensive.
