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compensation

What An MBA Didn’t Teach You About Sales

The sales profession is challenging. You need to work hard at it to succeed. You need to learn from the best. You need to improve your skills continuously. If you think you can sell since you are a hit at parties and have a lot of friends, you may soon find that you are a failure as a salesperson. Blunt truth:

because the sales profession is so hard, you have to focus on doing everything in sales very well, or you will be considered a failure.

I call this blog, Skinned Knees because I try to relate all of the learning that I have done over the past 4+ decades (while skinning my knees in the learning process).

I hope that you learn from my mistakes so that your business will grow!

Your Sales Compensation Plan Is Quietly Managing Your Sales Team

A salesperson reaches the final week of the quarter with a major opportunity ready to close. Legal has approved the agreement. The customer is prepared to move forward but asks for a 15 percent discount.

The salesperson understands what the discount does to margin. So does the sales manager. Finance knows as well. Yet the salesperson is measured on revenue, the manager needs the deal to make the quarterly forecast, and neither is directly rewarded for protecting margin.

The discount is approved. The deal closes. The commission increases. Everyone celebrates.

The company may have just paid someone extra to give away its profit.

No one acted dishonestly. The compensation plan worked precisely as designed. That is the problem.

Compensation Is a Management System

Most companies treat sales compensation as an administrative process. Leadership creates a plan, finance calculates payments, and managers resolve disputes when the numbers do not match expectations.

That view misses the strategic role compensation plays.

A compensation plan influences which customers salespeople pursue, how aggressively they discount, whether they favor one-year or multi-year agreements, how they collaborate, and whether they prioritize new business, renewals, margin, or market share.

What the company pays for will eventually outweigh what its leaders say they value.

Many sales leaders inherited plans that accumulated years of exceptions, temporary accelerators, regional variations, product overlays, split-credit rules, and special arrangements. The resulting spreadsheet may be technically functional while being strategically incoherent.

The warning signs are familiar:

Salespeople maintain private spreadsheets because they do not trust their commission statements.

Managers spend time resolving payout disputes instead of coaching pipeline.

Quotas are created by adding a percentage to last year’s number rather than analyzing territory potential.

A handful of top performers benefit from every contest while most of the team decides the competition is irrelevant.

These are not motivation problems. They are design problems that consume selling time, reduce margin, and erode trust.

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Build a Repeatable Sales Process Using Buyer Personas

In the world of sales, consistency is a cornerstone for success. Salespeople, sales managers, and CEOs alike strive to find a sustainable way to grow their business, and one effective strategy is to focus on buyer personas. Identifying and understanding these personas can streamline the sales process, making it easier to target the right customers and tailor your approach to meet their specific needs.

Consistency is key. When you consistently sell to profitable companies that see value in your solutions, you can standardize your sales processes and messaging. This consistency allows you to tweak and improve your methods incrementally, rather than making wild changes that may not lead to profitability. Many small companies don’t have the luxury of unlimited cash flow. They need to be mindful of their line of credit and ensure that their accounts receivable don’t get out of hand. By focusing on companies that are easy to sell to and where your product or service fits seamlessly, you can make your clients successful and maintain a steady growth trajectory.

The entrepreneurial operating system (EOS) is a valuable framework that helps businesses achieve consistency. By setting firm foundational corners, such as data, people, and core processes, businesses can create a structured environment where everyone can succeed. For sales departments, this means formalizing not only the messaging but also the reporting structure, job descriptions, core goals, and key behaviors. Consistency in these areas leads to reliable and repeatable results.

A repeatable sales process is crucial. If everything is custom, nothing is standardized, and this can lead to chaos. Sales leaders must set the standard for consistency, and both business owners and salespeople need to align themselves with these consistent behaviors. Standardizing the sales process enables better forecasting and a more predictable customer flow.

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The Buyer’s Clock Starts Before Your Sales Team Notices

A buyer does not become urgent when your CRM creates a record. The buyer became urgent earlier; at that moment, they decided the problem was worth interrupting their day for.

That distinction matters because too many B2B companies design their inbound process around internal workflow rather than buyer momentum. A prospect searches, compares, reads, evaluates, talks to a peer, visits your site, reviews your proof, and finally raises their hand. Then the company they contacted responds as though the buyer has agreed to wait patiently while marketing automation, CRM routing, territory logic, rep availability, and inbox notifications sort themselves out.

That is not a speed problem. It is a revenue system problem.

The real issue is not whether a sales rep should call faster. Of course they should. The deeper question is whether the business can detect, interpret, prioritize, enrich, route, and respond to buyer intent while the buyer still cares. When the answer is no, the company loses revenue without realizing it. The lost buyer does not announce their departure. They simply book with someone else, cool off, or decide the issue can wait.

This is why inbound orchestration deserves executive attention. High-intent inbound activity is not a generic lead flow. A demo request from a target-fit company is not the same as a newsletter signup. A pricing inquiry is not the same as a content download. Treating all of them as “leads” may simplify reporting, but it destroys commercial judgment.

When every lead looks the same, nothing feels urgent.

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The Great Filter – Why Most People Should Quit B2B Sales Today

If you want fairness, choose a role where performance is measured by compliance and consistency. If you want wealth, stay in sales and accept the only rule that matters: compensation follows captured value.

Walk into any growth-stage B2B sales organization, and you see two populations immediately:

  • One group is stuck in grievance. They stare at the CRM, explain shortfalls with lead quality, territory math, product gaps, or “unrealistic quota.” They want a manager to prescribe the playbook and then validate the effort. Their mindset is hourly, even when they’re paid a salary plus commission.
  • The other group is operating a different model. They talk about leverage, pipeline physics, conversion rates, deal control, and enterprise value. They create their own opportunities. They build customer confidence and earn the right to ask for a decision. They are not looking for comfort. They are looking for the wire.

If you identify with the first group, here’s the most respectful advice I can give you: exit sales on purpose. Move into HR, operations, finance, project management, enablement, customer success, analytics, or any role where the exchange is stable and the scorecard is predictable. Those functions matter. They are important and critical to most companies. They keep companies alive. They are also structurally designed to be fairer.

Sales is designed to be variable, value-based, and exposed. That’s the point.

The safety-net trap

Most people walk into sales carrying the wrong conditioning. School teaches that effort should correlate with reward. Show up, do the work, get the grade. Many corporate functions reinforce it. Do the tasks, hit the process metrics, stay inside the lines, and get the raise.

That conditioning becomes a trap the moment you step into a quota role.

In “fair” roles, compensation tracks your cost and your consistency. Your output is capped by your time, so your income is capped by a band. It’s stable, and it’s a ceiling.

Sales is different because it’s one of the few places left where pay can scale with impact. You are not paid for effort. You are paid for outcomes. That makes it feel brutal to people who want certainty, and it feels like freedom to people who want upside.

The moment you need the world to be fair, sales will punish you. The moment you accept the model, sales becomes one of the most rational games in business.

B2B Sales is rewarding because it isn’t easy or fair
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Hiring Your First Sales Leader? Build a Sales Machine, Not a Band-Aid

You are ready to hire your first sales leader when you are prepared to buy leverage, not relief. Titles do not grow revenue. A high-impact sales leader creates durable selling capability, reduces owner dependency, and raises standards through coaching, recruiting, and operating cadence. If what you really want is a second version of you to carry the number and keep deals moving, you are hiring a band-aid, and you will pay for it twice.

Most owners make this hire at precisely the wrong moment. The pressure is real, the pipeline feels fragile, and the business is starting to outgrow informal management. So the owner reaches for the obvious move: “We need a sales manager.” The problem is that the role is designed around short-term comfort rather than long-term capacity. The result is a well-paid administrative firefighter who inherits the chaos instead of fixing the system that creates it.

Before you post a job, clarify the objective. Do you want a revenue driver or a capability builder?

A revenue driver is a manager who helps you hit the number by conducting deal inspections, applying forecast pressure, and holding reps accountable. That can be valuable, but it is often a disguised need for personal production. A capability builder is a leader who creates repeatable performance by improving the quality of selling, tightening hiring standards, and building a coaching system that makes average reps better and good reps consistent. That is the role that changes enterprise value.

Here is the hard truth most owners avoid. If you design a role that combines selling and leading, selling will win. Always. When a leader has a quota, the business trains them to prioritize their own deals over the team’s development. They will “help” reps when a deal is in a late-stage, visible phase, then postpone coaching, recruiting, and onboarding because those activities do not pay this month. Over time, the team remains dependent, the pipeline remains uneven, and the owner remains in the middle.

Assessing readiness: leader or band aid

Readiness is not a revenue threshold. It is an operating decision. The question is whether you will let a sales leader lead.

The owner’s trap is hiring a leader while keeping day-to-day control: still running reviews, intervening in pricing, rewriting emails, jumping on calls, and closing important deals. In that environment, the new leader cannot build authority; they become an assistant with a title. You’ll be frustrated they’re “not taking enough off my plate,” while they’re frustrated at not being able to make decisions without you.

If you want a clean test, look for these warning signs:

  • You are still the primary deal closer and default problem solver.
  • You do not believe the company can make the number without your direct involvement.
  • You step into deals because you do not trust the process, the rep, or the forecast.
  • Your coaching is ad hoc, usually when something goes wrong.
  • Recruiting is episodic, triggered by pain, rather than continuous.
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Stop Betting on Superstars: How Operating Standards Turn Sellers into Predictable Producers

Many teams grow, but few truly scale revenue beyond individual hero efforts. That difference changes everything for leaders today and in the future. Growth relies on hustle; scaling depends on repeatability across segments and individuals. Your strategy must reflect that hard truth in practice.

Are you relying on one standout to win deals month after month? That looks strong until risk turns visible and costly. One resignation can cripple momentum and expose brittle systems that you had previously ignored.

Scalable sales replaces heroics with defined, teachable operating rhythms that everyone follows. It turns chaos into predictable pipeline progress and results. It clarifies markets, messages, motions, and measurable expectations for every seller on a weekly basis. It builds leverage into onboarding and coaching for consistency. It protects margins while systematically accelerating win rates and velocity across territories.

The foundation begins with a clear picture of your ideal customer, including any disqualifying factors. Having an accurate Ideal Client Profile (ICP) helps minimize waste and reduce uncertainty in your efforts. Take time to define firmographics, pain points, triggers, and buying behaviors using consistent language based on shared evidence. Understand who cares about these issues and why it matters to them now. Also, identify negative personas to sharpen your focus and qualification processes in marketing and sales. A well-defined ICP can significantly boost your conversion rates and shorten the sales cycle.

Next, turn your ICP into straightforward messaging and discovery frameworks tailored for each stage. Consider what unique problems you solve for your customers. What outcomes are most important to them, and who are the key stakeholders by role and priority?

Build talk tracks that lead buyers, not chase buyers with purpose always. Anchor questions to the business metrics and risks they feel. Teach a qualification that tests mutual commitment and outlines next steps with attached dates. Avoid fluffy demos; design relevant proofs using their data. Process specificity turns B players into consistent producers without copying another personality.

I suggest you establish a practical, stage-based operating rhythm that everyone can easily understand and follow. By sharing clear definitions and expectations, managing the pipeline becomes a consistent and smooth process each week. Define each stage with specific exit criteria—avoiding vague intentions or subjective feelings. For example, discovery is considered complete when stakeholders confirm the consequences and impact, and solution fit is achieved when success criteria and ownership are clearly aligned. The commit stage should be backed by a shared plan with clear dates and assigned owners. During weekly reviews, focus on assessing quality rather than just quantity or activity counts. Ask yourself:

  • Does evidence from buyers’ backstage moves have a direct impact on their purchasing decisions?
  • Are the next steps specific, mutually agreed upon, and already scheduled on both calendars?
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Energize and Motivate: Essential Tips for an Effective Sales Kickoff Meeting

Before the year comes to a close, it’s time for sales teams and their leaders to prepare for the annual kickoff meeting. Don’t wait until December to start this process. If you have 50 or more people to invite, you may have to plan 6-9 months in advance. If your group is smaller (under 50), you should start planning by late September or early October.

This crucial event sets the stage for the upcoming year, establishing goals, strategies, and the motivation necessary to hit the ground running. Whether you are a salesperson, a sales manager, or the CEO of a small company, organizing an effective kickoff meeting is imperative to ensure a successful year ahead.

The first step in planning your annual sales meeting is to choose an appropriate venue. While it may be tempting to hold the meeting in your usual office space, it’s beneficial to opt for a location outside of your daily work environment. This helps to minimize distractions and fosters a creative atmosphere. 

A nearby hotel or a conference center can serve as an excellent venue. The key is to find a place where your team can focus entirely on the meeting without the usual interruptions from their day-to-day responsibilities.

Once the venue is secured, it’s time to think about who should be in attendance. While the primary focus will be on your sales team, consider including key personnel from other departments such as marketing, IT, and customer service. These individuals play a crucial role in supporting the sales process and can provide valuable insights and updates that will help your sales team achieve success. Additionally, involving them in the kickoff meeting promotes a sense of unity and collaboration across the company.

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Transform Your Sales Team: Strategic Compensation Adjustments for Year-End Momentum

Autumn is the time of year for sales leaders, managers, and CEOs to begin laying the groundwork for next year’s success. Have you considered how your current sales compensation plans impact your team’s motivation and productivity? Now is the ideal moment to evaluate, adjust, and deliver these plans, preferably by December 1st. Doing so can significantly influence your team’s drive to close deals in December and build momentum heading into the next fiscal year.

Sales compensation should be motivating and rewarding for employees. It directly shapes your sales team’s behaviors and priorities. An effective plan incentivizes the right actions and deters the wrong ones.

Consider a common pitfall: salespeople holding back deals to inflate their numbers for the following year. Does your current compensation structure inadvertently reward this practice? If so, you’re unintentionally harming your year-end results.

To counter this, strategically incorporate compensation escalators and cliffs into your plan. Escalators progressively reward increased sales performance throughout the year. Higher performance equals higher commission rates, driving your sales team to push forward continually. 

Commission cliffs reset commission rates at the beginning of each year, creating a sense of urgency to close deals before the end of December. Communicating these compensation details clearly by early December ensures your team understands what’s at stake.

Don’t hold your team back!

Another critical compensation consideration is eliminating commission caps. While some organizations cap commissions to control expenses, this practice can backfire dramatically. Caps tell your top-performing salespeople that their exceptional efforts are neither valued nor rewarded appropriately. This demotivates your top talent and encourages them to seek opportunities elsewhere that offer uncapped rewards. 

Removing commission caps signals that the organization fully supports and rewards outstanding performance. Have you considered how much growth your company might achieve if artificial constraints didn’t limit your sales team?

When evaluating compensation, look beyond simple cost containment. Consider the true profitability of incentivizing increased sales volume. Once salespeople reach their targets and enter accelerators, each additional dollar earned typically comes at a lower incremental cost to your organization. 

Sales transactions earlier in the year have already covered the salesperson’s base salary once they have met their annual quota. In fact, at 100% of quota, the salesperson should have covered all their costs and their share of the overall company’s revenue needs. Thus, every extra sale at escalated commission rates still contributes positively to your overall profitability. 

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Hiring for Growth: How to Build a Sales Team That Drives Long-Term Success

Building a successful sales team requires more than just filling open seats with available candidates. Company leadership must strategically align its hiring process with business objectives, market needs, and long-term goals. 

Whether you’re a solopreneur transitioning to a team-based approach or a CEO managing a growing sales force, the principles of intentional recruitment and onboarding remain the same. Hiring the right people is an investment in the future of your business.

One of the most common pitfalls in sales hiring is a lack of intentionality. Too often, small businesses hire out of convenience, choosing candidates from their immediate network or taking the first person who seems interested. While this approach may solve an immediate need, it rarely leads to long-term success. 

Hiring a salesperson means selecting someone who can actively drive growth and represent your brand with competence and integrity. The stakes are even higher when you’re working with a lean team; every hire matters, and mediocrity is not an option.

To avoid these missteps, it’s essential to approach hiring with the same rigor you apply to your sales process. Think of recruiting as a parallel to securing a high-value client. Just as you wouldn’t sell your product without qualifying leads or understanding their needs, you shouldn’t hire without a structured process to evaluate candidates. 

Begin by defining what success looks like for the role. What skills and attributes are non-negotiable? What specific outcomes do you expect this person to achieve within their first 90 days? A clear job description and measurable KPIs set the foundation for finding the right fit.

Cultural alignment is another critical factor. Your salespeople are the face of your business to prospects and customers. Their ability to embody your company’s values and mission can make or break the customer experience. A candidate might have a stellar track record, but if their approach clashes with your team’s culture, the partnership is unlikely to succeed. At the same time, skills and experience must align with the specific demands of the role. For instance, if your goal is aggressive market penetration, you need a hunter mentality, someone skilled in building relationships from scratch and closing deals in uncharted territory.

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