There are a rare breed of salespeople that value things like equity in exchange for sales, but its not typical – and it would be more focused on the high-end VP of sales type. The big issue is that a salesperson might only make $40,000 / year – but he/she actually expects to make $150,000 or more based on performance. What you can't do, it expect that person to make $40,000 and then equity because they just won't be able to live on it easily and the competing offers out there that will make them actual cash will be too tempting.

The problem with the criticism of this post is the fact that they are pointing out a major difference in the compensation structures and motivation of the general workforce and salespeople. Dan's video talked about how financial incentives narrowed the thinking of the creative people. This is the whole point of sales compensation plans. You want to channel the efforts and activities of the salespeople to drive the business results of the company – and you are willing to pay for it.

I think you can get somewhat creative with a compensation plan that provides non cash incentives (i.e. equity, trips, etc) but I don't think that these will work in the long term – unless you are prepared to pay a much larger base salary than normal.

I actually think that the confusion over this post is enlightening as to why many non-sales management can't provide the correct incentives to a sales team. They think we are like the rest of the work force, and we aren't.

There are a rare breed of salespeople that value things like equity in exchange for sales, but its not typical – and it would be more focused on the high-end VP of sales type. The big issue is that a salesperson might only make $40,000 / year – but he/she actually expects to make $150,000 or more based on performance. What you can't do, it expect that person to make $40,000 and then equity because they just won't be able to live on it easily and the competing offers out there that will make them actual cash will be too tempting.

The problem with the criticism of this post is the fact that they are pointing out a major difference in the compensation structures and motivation of the general workforce and salespeople. Dan's video talked about how financial incentives narrowed the thinking of the creative people. This is the whole point of sales compensation plans. You want to channel the efforts and activities of the salespeople to drive the business results of the company – and you are willing to pay for it.

I think you can get somewhat creative with a compensation plan that provides non cash incentives (i.e. equity, trips, etc) but I don't think that these will work in the long term – unless you are prepared to pay a much larger base salary than normal.

I actually think that the confusion over this post is enlightening as to why many non-sales management can't provide the correct incentives to a sales team. They think we are like the rest of the work force, and we aren't.

You can criticize my parenting for sure – but I claim to be an expert sales guy – not an expert parent!

In this talk, Dan says that when you put certain incentives on – you narrow the focus of thinking. EXACTLY!! You WANT to focus the salespersons thinking and have them focused on MONEY. Both for themselves and the company.

Salespeople are not like the rest of you. If you want to motivate a salesteam, you need to re-do all of these tests with only salespeople.

If I was presented with the candle problem, I'd sell the candle and use the money to buy a dripless candle!