Alan J. Zell

Contrary to what most people believe, commissions will never turn a poor salesperson into a good salesperson or a good salesperson into a great salesperson. They do, however, make great salespeople greater—if they believe they are being compensated fairly and if their commission rate is not decreased and, or their goal increased, arbitrarily. Those actions are counterproductive to your business success.

Consider these two examples from my 25 years as a buyer of tableware and gifts.

A well-respected salesman who called on me was a real professional at his job. His commissions kept getting larger because not only was the merchandise top rate, but also his knowledge was. When his commissions rose to where he was making more than many higher up in the organization, his managers raised the sales goals. The explanation was that the company had raised prices, so it was easier to reach the goal. While they did not lower his commissions, executives cut his...

Is the goal to make technology work for salespeople or should it be to help the salesperson's customers? Salespeople, after all, are the face of the company for the customer, and it's their job to help customers help their customers. This is important, whether the technology is directed toward wholesale or retail customers. For wholesale customers, they are looking for several things to fill several needs. Retail customers are looking for one thing to fill one need. In my world, it is the end customer that is the primary customer.

As a buyer for our retail store, what I wanted to know from my vendors' representatives was which items were on back order, when could I expect them and, if I were to write an new order, how soon would I receive it.

When I was in retailing in our family's fine jewelry and gift business before I went into consulting in 1983, something took place that I had not thought of or intended to have happen. It related to employee job reviews.

Let me set the stage. In a casual conversation, one of our young employees, who had been with us for about a year, asked me what we family members believed were the criteria for employees to keep their jobs. My answer was essentially this: "Either be so proficient that we can't afford to lose you or be so versatile—have working knowledge of the product—and good that you could fill in where you were needed and, of course, make sales. This young woman, luckily for us, was extremely versatile.

One day, after we had completed her performance review, she asked if she could be frank with me. Seeing that she was hesitant about stepping on my toes or being critical of me, I asked her what she had on her mind.