The BIGG Successs Show
Am I Paying My Salesperson Too Much?
We help a business owner whose salesperson is making more money than he is. Find a written summary of today's show at biggsuccess.com.
- Welcome to The Big Success Show. Today, we help a business owner whose salesperson is making more than he is. - The Big Success Show with George and Mary Lynn. - Max is a business owner with a big challenge for us Mary Lynn. About a year ago, he hired this new sales guy and he put him on the same compensation package that his other salespeople were on. It was a small base with a good incentive. Well, here's the good news. The guy's done phenomenal. - All right. - So phenomenal in fact that Max's company is showing record sales and profits largely due to this new salesperson. - Awesome. - But here's the problem. This salesperson's now making more money than Max. And so Max is wondering if he should adjust the salesperson's compensation. - Man, it's like a good thing and a bad thing all combined. So what should he do, George? - Here's what I say, nothing. Till next time, here's to your big success. - Now, wait a minute here. Before we turn this into the world's shortest show, let's talk about this a little bit more. Is it possible that Max made a mistake with his incentive program because it's costing him too much at the moment? - One word, Mary Lynn. No. Until next time, here's to your big success. - All right. Hold on. Are we keeping you from something today, George? You seem to be in a rush. - I'm running late becoming an early adopter. How's that? - That's true. And should we tell the story about you and the DVD? - Don't go there, Mary Lynn. - This is BCR. All right, we'll save that for another day. Let's get back to Max. - Well, as far as the incentive program being a mistake, Max, you say that the business is more profitable than ever. Hey, if it ain't broke, don't fix it. - But I've heard of great salespeople who get their compensation cut or even let go when a situation like this occurs. - Well, it does happen, Mary Lynn, but do you remember the nursery rhyme about the goose that laid the golden egg? - Of course. And in this case, the salesperson is the goose. Yes, don't goose him. - But like the old proverb says, kill not the goose that lays the golden eggs. - Yeah, and I think if you do that, you're really missing the big picture. You know, as a business owner, Max, your big payoff often comes from when you sell it, not what you make each year. You're building an asset and that asset's value is based on the income of your business. As your bottom line increases, so does the value of your asset. So you're building an asset. You're building your net worth here. - And George, real quick, when you were in business, did you have a salesperson like this? - Actually, I had several people that were making more money than me. Yes, and actually it made me happy 'cause we were doing well. - All right, coming up, we're gonna suggest a strategy for Max to increase his profits even more. - Today we're answering a big challenge from Max who owns a business and he has this phenomenal salesperson who's now making more money than Max, but the good news is Max is showing record profits. - We've told Max to do nothing. - Leave it be, but Max, here's something you can do. - As you add salespeople, Max, try to model this employee. What industry did he come from? Did he come inside your industry or from outside? What industry was that? What experience did he have? What education? Are there other clues you can get from his background? If you did any kind of personality assessment before you hired him, what did his look like? - So George, are you suggesting that Max tried to clone this guy? - Yes, until next time, here's to your big success. - There you go again. All kidding aside though, it would be great to find another salesperson like this one. And another idea, ask your salesperson if he knows anybody 'cause there's a good chance that he might know someone just like him. - Yeah, big goal-gaters, no big goal-gaters, don't they? - Exactly. - And Max, you say you're making record sales and profits, so the odds are you can probably afford to add another salesperson. Look at your capacity and your infrastructure. If they support an additional salesperson, go for it. And if you do that, the odds are, you'll be the highest paid employee of the company again soon. - All right, thank you, Max, for sending us your big challenge. You'll find a written summary of today's show at Big Success that's big with 2gsuccess.com. - Next time we ask, does Barack Obama's favorite music make him more interesting to you? - Hmm, I'll be interested to hear that. - I'm glad to hear that. - Until then, here's to your big success. - Hey, that's my line. - The Big Success Show at B-I-G-G Success.com. (upbeat music) [Music]