Sales Incentives Quotes

But as incentives go, commissions are tricky. First of all, a 6 percent real-estate commission is typically split between the seller’s agent and the buyer’s. Each agent then kicks back roughly half of her take to the agency. Which means that only 1.5 percent of the purchase price goes directly into your agent’s pocket. So on the sale of your $300,000 house, her personal take of the $18,000 commission is $4,500. Still not bad, you say. But what if the house was actually worth more than $300,000? What if, with a little more effort and patience and a few more newspaper ads, she could have sold it for $310,000? After the commission, that puts an additional $9,400 in your pocket. But the agent’s additional share—her personal 1.5 percent of the extra $10,000—is a mere $150. If you earn $9,400 while she earns only $150, maybe your incentives aren’t aligned after all.

How does paying people more money make you more money? It works like this. The more you pay your workers, the more they spend. Remember, they're not just your workers- they're your consumers, too. The more they spend their extra cash on your products, the more your profits go up. Also, when employees have enough money that they don't have to live in constant fear of bankruptcy, they're able to focus more on their work- and be more productive. With fewer personal problems and less stress hanging over them, they'll lose less time at work, meaning more profits for you. Pay them enough to afford a late model car (i.e. one that works), and they'll rarely be late for work. And knowing that they'll be able to provide a better life for their children will not only give them a more positive attitude, it'll give them hope- and an incentive to do well for the company because the better the company does, the better they'll do. Of course, if you're like most corporations these days- announcing mass layoffs right after posting record profits- then you're already hemorrhaging the trust and confidence of your remaining workforce, and your employees are doing their jobs in a state of fear. Productivity will drop. That will hurt sales. You will suffer. Ask the people at Firestone: Ford has alleged that the tire company fired its longtime union employees, then brought in untrained scab workers who ended up making thousands of defective tires- and 203 dead customers later, Firestone is in the toilet.

If low price is the only basis of competition with rival products, similarly produced, there ensues a cut-throat competition which can end only by taking all the profit and incentive out of the industry. The logical way out of this dilemma is for the manufacturer to develop some sales appeal other than mere cheapness, to give the product, in the public mind, some other attraction, some idea that will modify the product slightly, some element of originality that will distinguish it from products in the same line. Thus,

When the solution to a given problem doesn’t lay right before our eyes, it is easy to assume that no solution exists. But history has shown again and again that such assumptions are wrong. This is not to say the world is perfect. Nor that all progress is always good. Even widespread societal gains inevitably produce losses for some people. That’s why the economist Joseph Schumpeter referred to capitalism as “creative destruction.” But humankind has a great capacity for finding technological solutions to seemingly intractable problems, and this will likely be the case for global warming. It isn’t that the problem isn’t potentially large. It’s just that human ingenuity—when given proper incentives—is bound to be larger. Even more encouraging, technological fixes are often far simpler, and therefore cheaper, than the doomsayers could have imagined. Indeed, in the final chapter of this book we’ll meet a band of renegade engineers who have developed not one but three global-warming fixes, any of which could be bought for less than the annual sales tally of all the Thoroughbred horses at Keeneland auction house in Kentucky.

The best incentives in the life of a person involved in sales can be offering valuable products and solving end user problems. No bonus can replace that. Remember that.

Let’s say that you have committed to running every day for two weeks, and at the end of those two weeks, you “reward” yourself with a massage. I would say, “Good for you!” because we all could benefit from more massages. But I would also say that your massage wasn’t a reward. It was an incentive. The definition of a reward in behavior science is an experience directly tied to a behavior that makes that behavior more likely to happen again. The timing of the reward matters. Scientists learned decades ago that rewards need to happen either during the behavior or milli-seconds afterward. Dopamine is released and processed by the brain very quickly. That means you’ve got to cue up those good feelings fast to form a habit. Incentives like a sales bonus or a monthly massage can motivate you, but they don’t rewire your brain. Incentives are way too far in the future to give you that all-important shot of dopamine that encodes the new habit. Doing three squats in the morning and rewarding yourself with a movie that evening won’t work. The squats and the good feelings you get from the movie are too far apart for dopamine to build a bridge between the two. The neurochemical reaction that you are trying to hack is not only time dependent, it’s also highly individualized. What causes one person to feel good may not work for everyone. Your boss may love the smell of coffee. When she enters a coffee shop and inhales, she feels good. And her immediate feeling builds her habit of visiting the coffee shop. But your coworker might not like the way coffee smells. His brain won’t react in the same way. A real reward — something that will actually create a habit — is a much narrower target to hit than most people think. I

Encouraging consumers to think more seriously about the financial, environmental, and personal costs of their consumption would be a major step in addressing the crisis of quality and the environmental and social impacts of too much stuff. Better yet, it would spur businesses to seek economic incentives to design and market better products. Today's secondhand economy, faltering in search of quality, should have more than it can handle.

We can prospect for new clients for 30 minutes, send follow-up, follow-through, and follow-back emails and texts for another 30 minutes, and strategize with our manager on an incentive-of-the-day to offer to customers if they buy TODAY. Trolling Facebook for an hour is only OK if you’re finding clients. Serhant Secret #18 No customers in front of you?

Always make a counteroffer. You can’t get anywhere without a counter. Remind clients there is always a cost for time. Time is expensive. You can’t predict the market. You can’t assume there is always a better offer. Can the parties involved split the difference? Can you as the salesperson offer an additional incentive? Can you lower your commission? Pay for a cost associated with the deal yourself? Remember, $10 is better than $0!

The triangle of fraud . . .” “What’s that?” He started, as if I’d woken him. “Oh—incentive, opportunity, and rationalization.” He stuck out three fingers and began counting them off. “The first leg, incentive, is pressure to commit the crime. A person is looking for a way to solve their financial issues due to an inability to pay their bills, drug and/or alcohol addiction, or simply status, wanting to have a bigger house or drive a fancier car.” He counted off another finger. “The second leg is perceived opportunity, where the individual identifies ways to commit fraud with the lowest amount of risk, like lying about the number of hours worked, inflated sales or productivity to garner higher pay, creating false invoices for products never purchased and pocketing the money, or selling proprietary company information to competitors.” He counted off the last finger. “The third leg of the triangle, and this is an important one, is where individuals persuade themselves into believing that they’re doing the right thing. They convince themselves that they’re just borrowing the money or feel entitled to it through perceived low pay, uncompensated hours, lack of respect, or trying to provide for their family.” “Okay, but what pushes two men whom we assume are relatively upright individuals into going so far as to kill someone?” “A lot of money.” I laughed.

Hiring and onboarding approaches, sales and marketing processes, budgeting practices, incentive structures, performance evaluation and management systems, and every other organizational system, structure, and process can be conceived and deployed in inward-mindset or outward-mindset ways. Organizations that are serious about operating with an outward mindset turn these systems and processes outward to invite and reinforce outward-mindset working.

The larger truth that I failed to see turned out to be another of those paradoxes—like the discounters’ principle of the less you charge, the more you’ll earn. And here it is: the more you share profits with your associates—whether it’s in salaries or incentives or bonuses or stock discounts—the more profit will accrue to the company. Why? Because the way management treats the associates is exactly how the associates will then treat the customers. And if the associates treat the customers well, the customers will return again and again, and that is where the real profit in this business lies, not in trying to drag strangers into your stores for one-time purchases based on splashy sales or expensive advertising. Satisfied, loyal, repeat customers are at the heart of Wal-Mart’s spectacular profit margins,

Everything comes with overhead, that's reality. Everything comes with pieces you don't like. You could be a supreme court justice and there's still going to be pieces of your job you don't like. You can be a university professor and you still have to go to committee meetings. Every job comes with pieces you don't like. And we need to say: That's part of it. That's part of everything. Nothing worth pursuing is free. The price is usually proportionate to the rewards. But there's rarely a price tag and you don't pay the price with cash. Most things worth pursuing is paid for in stress, uncertainty, dealing with quirky people, bureaucracy, other people's conflicting incentives, hassle, nonsense, long hours and constant doubt. That's the overhead costs of getting ahead. You have to realize that it's a price that has to be paid, there are few coupons and sales are rare.

Convention also dictates that ‘big is beautiful’, but every time one of our ventures gets too big we divide it up into smaller units. I go to the deputy managing director, the deputy sales director and the deputy marketing director and say, ‘Congratulations. You’re now the MD, the sales director and the marketing director of a new company.’ Each time we’ve done this, the people involved haven’t had much more work to do, but necessarily they have a greater incentive to perform and a greater zest for their work.

Here are four examples of Lead Magnets I use: A checklist that can be used to properly perform something I explained in a video. A template for determining, say, a business’s profit margin. An advanced guide that goes further into the details of a subject of one of my videos. A unique book that provides substantial value but is offered for free. For me, it is 11 Side Hustle Ideas to Make $500/Day from Your Phone. The appropriate opt-in incentive depends on your content. Here are other types of examples: A DIY carpenter could offer plans to make a corner table. A marketing YouTuber could offer scripts of what to say on sales phone calls. A landscaping expert might offer recommendations for which kinds of grass to use around the United States. YouTuber Nick True at Mapped Out Money, who makes video tutorials that teach the best practices for using the personal budgeting software YNAB, found that he gets the highest sign-up rates when he offers a checklist that relates to the video. His followers really like having a resource that they can use to put his advice into practice. Jess Dante of Love and London runs a YouTube channel helping viewers plan their trips to London by suggesting lesser-known restaurants and stores to visit. Her superstar opt-in incentive is a free London 101 Guide with everything a first-time visitor needs to know. It’s been downloaded more than 45,000 times. Where you make your call to action will also have an impact on your success building your email list. You can make your call to action in a variety of places or ways inside your videos. One of the best ways is to give a short, relevant tease of the bonus or resource you’re offering within the YouTube video and tell people where they can learn more. CHALLENGE Create a Lead Magnet. It’s time to create your first Lead Magnet using the process we’ve just outlined above. You can use your piece of content from the previous chapter as a base or start something new. Don’t spend more than two hours on the first iteration. If you want to turn it into a big thing later on, great. But start SMALL. Go to MillionDollarWeekend.com to get Lead Magnet templates! (See what I did there?)

In institutional settings, we need to be alert to the wide divergence between what is good for the company and what is good for the individual. Ironically, the kind of incentives we put in place to encourage people to perform may lead to them to be unwilling to take any risks that have a potential personal downside – even when this would be the best approach for the company overall. For example, preferring a definite 5 per cent gain in sales to a 50 per cent chance of a 20 per cent gain. Why else do you think Management Consultancies are so rich?

The larger truth that I failed to see turned out to be another of those paradoxes—like the discounters’ principle of the less you charge, the more you’ll earn. And here it is: the more you share profits with your associates—whether it’s in salaries or incentives or bonuses or stock discounts—the more profit will accrue to the company. Why? Because the way management treats the associates is exactly how the associates will then treat the customers. And if the associates treat the customers well, the customers will return again and again, and that is where the real profit in this business lies, not in trying to drag strangers into your stores for one-time purchases based on splashy sales or expensive advertising. Satisfied, loyal, repeat customers are at the heart of Wal-Mart’s spectacular profit margins, and those customers are loyal to us because our associates treat them better than salespeople in other stores do. So, in the whole Wal-Mart scheme of things, the most important contact ever made is between the associate in the store and the customer. I

To make up for the projected billion-dollar-a-year shortfall created by the many new tax cuts he helped to deliver, something had to give. So for savings, the legislators turned to the one institution that had distinguished North Carolina from many other southern states—its celebrated public education system. The assault was systematic. They authorized vouchers for private schools while putting the public school budget in a vise and squeezing. They eliminated teachers’ assistants and reduced teacher pay from the twenty-first highest in the country to the forty-sixth. They abolished incentives for teachers to earn higher degrees and reduced funding for a successful program for at-risk preschoolers. Voters had overwhelmingly preferred to avoid these cuts by extending a temporary one-penny sales tax to sustain educational funding, but the legislators, many of whom had signed a no-tax pledge promoted by Americans for Prosperity, made the cuts anyway.

Many people fear that decriminalization and the controlled dispensing of drugs will lead to widespread substance use among people who are now deterred from becoming addicts only by existing legal prohibitions. Like other tenets of the War on Drugs, this view entirely lacks supporting evidence. Any data on the subject points to the opposite prediction. For example, for many decades in the United Kingdom, heroin has been dispensed, under legal supervision, to addicts. The same type of program has been offered on a limited basis in other countries as well, and nowhere has it been found that this measure served in any way to entice unaddicted people into addiction. That is not surprising, given that addiction is a response to life experience, not simply to a drug. People who do not suffer the searing emotional pain that drives hardcore drug addiction will rarely fall into dependency on chemicals, even if these were more readily available — and, once more, public access to habit-forming substances is not being proposed. The call for the decriminalization of drugs for personal use does not imply legal acceptance of drug dealing. Criminalization and prevention are not identical — if anything, the first undermines the other. Paradoxical though it may seem, current drug laws against possession make drugs more readily available to potential new users than decriminalization would. Only the War on Drugs creates the raison d’être of the international trafficking industry, most of whose wealth is based on satisfying the cravings of established drug addicts. Without the exorbitant profits yielded by supplying to addicted users desperate for their substances, the illegal market would shrink to a fragment of its present size. Further, much of the street-level front-line sales force of the illicit drug trade consists of users raising money to support their habit. With the decriminalization of possession for personal use and the medically supervised distribution of drugs, the incentive to sell to new “customers,” including young kids, would largely evaporate. Policing resources could then be concentrated on the remaining large-scale traffickers — if any.

Each consumer who holds off on a purchase in order to wait for a sale generates a slight benefit for all other consumers in the form of increased pressure on suppliers to lower the price. Similarly, each supplier who delays putting things on sale produces a benefit for other suppliers in the form of increased pressure on consumers to buy at that price. In both cases, this generates a free-rider incentive—consumers may break ranks and buy at full price, or suppliers may break ranks and have a sale. The consequence of these two collective action problems will be downward pressure on the price of plentiful goods and upward pressure on the price of scarce goods. The only equilibrium will be the point at which the amount of each good exchanged is just right. Inventories will clear, and the resulting allocation will be maximally efficient.

1914, its first war on drugs,*13 passing the Harrison Narcotics Tax Act, which restricted the sale of opiates and cocaine. The reasoning was unoriginal. “The use of cocaine by unfortunate women generally and by negroes in certain parts of the country is simply appalling,” the American Pharmaceutical Association’s Committee on the Acquirement of the Drug Habit had concluded in 1902. The New York Times published an article by a physician saying that the South was threatened by “cocaine-crazed negroes,” to whom the drug had awarded expert marksmanship and an immunity to bullets “large enough to ‘kill any game in America.’ ” Another physician, Hamilton Wright, the “father of American narcotic law,” reported to Congress that cocaine lent “encouragement” to “the humbler ranks of the negro population in the South.” Should anyone doubt the implication of encouragement, Wright spelled it out: “It has been authoritatively stated that cocaine is often the direct incentive to the crime of rape by the negroes of the South and other sections of the country.

Variation Management Is there internally produced variation (e.g., end-of-quarter sales incentives)? How can we level incoming workload along the value stream to reduce variation and achieve greater flow? Can we reduce variation in customer or internal requirements? How can necessary variation be addressed most effectively? Are there common prioritization rules in place throughout the value stream?

Are you creating a way for your middle tier customers to buy your products by giving them discounts and incentives? 

Aligning strategy and sales is the most difficult part of implementation because it involves a combination of factors: a coherent strategy, the right incentives, hiring, developing a performance culture, and sustaining field behaviors in the face of market changes largely outside the control of the seller.

that U.S. corporate taxes are now, thanks to a recent rollback in rates in Japan, the highest in the world. He didn’t mention that in 1950 in this country, corporate taxes accounted for about 30% of all federal revenue. But in 2012, corporate taxes will account for less than 7% of all federal revenue. Think maybe we’re doing something wrong … that Obama should be addressing? Fact is, no U.S. company has an incentive to keep operations in this country—particularly in a time when two-thirds of their global sales are in overseas markets. Our government

Automakers typically offer deals in the summer to clear out inventory before cars from the new model year arrive in the fall. But July's discounts were unusually high. Incentives rose 8 percent - $216 per vehicle - over last July, according to Jesse Toprak, chief analyst for Cars.com. Incentives averaged $2,774 per vehicle, the most since August 2010. Toprak said Ford, Toyota, Volkswagen and Hyundai were the most generous. Chrysler saw the biggest gain in July, with sales up 20 percent to 140,102, led by the Ram pickup and the new Jeep Cherokee small SUV. Jeep sales rose 41 percent overall.

As a legal and economic instrument, the zone presides over a cocktail of enticements and legal exemptions that are sometimes mixed together with domestic civil laws, sometimes manipulated by business to create international law, and sometimes adopted by the nation in its entirety. Incentives vary in every location but might include: holidays from income or sales taxes, dedicated utilities like electricity or broadband, deregulation of labor laws, prohibition of labor unions and strikes, deregulation of environmental laws, streamlined customs and access to cheap imported or domestic labor, cheap land and foreign ownership of property, exemption from import/export duties, foreign language services, or relaxed licensing requirements.

What I do not believe in, are incentives handed over as a kind of sop (you will find these everywhere) or in an owner sharing the proceeds of an asset sale unless contractually bound to do so. Use

A brand-new, highly effective anti-flu drug that had potential for massive sales. With the new bird flu scare, Merwyn stood to make a bundle off of the ensuing panic. With a 98 percent profit margin and skyrocketing demand, Merwyn couldn’t lose. Andrew alone stood to make millions in stock options and bonus incentives for brokering the deal. It was like a dream come true: the global spread of the avian flu virus, millions infected, a few hundred thousand dead and millions more taking Preva-Flu by the $80 packet.

Buybacks: How the Game Works Imagine a company – let’s call it FinEng Corp – with sales of $1 billion and a 5 per cent profit margin. The $50 million of profits are taxed at a 30 per cent rate. The company has 500 million shares outstanding and shareholders’ equity of $500 million. The shares trade at 15 times earnings. The corporate incentive plan provides senior executives with 50 million stock options, which strike at the current market price. At this point, FinEng has no

1. If you’re starting a new sales organization, do not offer traditional monthly cash commissions. It’s best to have everyone in your company compensated in the same way—so offer salespeople a competitive salary and sales performance bonuses of additional stock options that vest over time. Stock provides a built-in incentive to stick around and invest in long-term customers who are good for the business. 2. If you’re trying to transition to a relationship-driven culture, you may not be able to kill traditional commissions right away. In that case, any stock or cash (stock is still preferable) that you give as a commission should vest over time. Pay 10–15 percent of the commission at first, then another tranche in a few months, then another a few months after that, etc. If the customer leaves, the salesperson loses the remainder of their commission. 3. Every sale should be a team sale. So if you have a customer success team (the team that actually delivers, sets up, and maintains whatever is sold to the customer), then it should sign off on every deal. Sales and customer success should be under one leader, in the same silo, being compensated in the same way. In this setup, sales can’t just throw a customer over the fence and never think about them again. If there’s no customer success team, then sales should work very closely with customer support, operations, or manufacturing—create a board of people to approve each commitment.

Follow-Up Framework Opt-In: Offer a desirable bribe (also called a “hook” or “lead magnet”) in exchange for an email address (at a minimum). Hook Delivery: Deliver what was promised for the prospect opting in. Digital delivery can range from digital reports to emails to audio or video content. The benefit of digital delivery is that you can provide immediate gratification to your prospect and it’s free to send. Sellucation: Sellucation is selling through education. Each Follow-Up installment is an opportunity to address common questions, handle objections, and amplify the problem while presenting your solution. It’s education with the implicit intent of driving sales. Social Proof: Reiterating the social proof you presented in the Engage & Educate phase with testimonials, reviews, awards, partner logos, and case studies will enhance your credibility and build trust. Promotions: Offering free consultations, discounts, and other incentives can motivate your prospect to take action. Communicating an expiration associated with the promotion can create a sense of urgency that further persuades prospects to move forward.

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Whenever in doubt, always look for the financial incentive." Law of the Hired Gun

The reasons why industrial-scale CHP has not been used more widely in the United States are all related to regulatory and institutional hurdles. It can be difficult to make the necessary coordination arrangements with a large building that will accept and use a generator’s waste heat. It also requires navigating many siting, land use, and other rules to put generators into or near heat users. Arrangements with utilities are also a frequent issue. Because cogenerators displace utility sales, utilities don’t have an economic incentive to help them get established—yet utilities have to connect up and monitor the cogenerator and provide backup service when the cogenerator trips off (some cogenerators are “off the grid,” in which case there is no backup, but most are not).

MANAGING THE CURRENCY WELL-MANAGED Policy makers bluff, conveying that they will never allow the currency to weaken much. When they do devalue, it’s a surprise. The devaluation is large enough that the people are no longer broadly expecting the currency weakening more (creating a two-way market). POORLY MANAGED Policy makers are widely expected to allow a currency weakness, causing more downward pressure on the currency and higher interest rates. The initial devaluation is small, and further devaluations are needed. The market expects this, causing higher interest rates and inflation expectations. CLOSING EXTERNAL IMBALANCES WELL-MANAGED Tight monetary policy causes domestic demand to contract in line with the fall in incomes. Policy makers create incentives for investors to stay in the currency (i.e., higher interest rates that compensate for risk of currency depreciation). POORLY MANAGED Policy makers favor domestic conditions, and monetary policy is too loose, putting off domestic pain and stoking inflation. Policy makers attempt to stop the outflow of capital with capital controls or other restrictive measures. SMOOTHING THE DOWNTURN WELL-MANAGED Use reserves judiciously to smooth the withdrawal of foreign capital while working to close imbalances. POORLY MANAGED Rely on reserve sales to maintain higher levels of spending. MANAGING BAD DEBTS/DEFAULTS WELL-MANAGED Work through debts of entities that are over-indebted, making up the gap with credit elsewhere. POORLY MANAGED Allow disorderly defaults that lead to increased uncertainty and capital flight.

These communications can be conversations or one-way testimonials. They can be live or recorded. They can be in person, by telephone, by email, on a blog, or by any other means of communication. They can be one-to-one, one-to-many (broadcast), or group discussions. But, the essential element is that they are from or among people who are perceived to have little commercial vested interest in persuading someone else to use the product—and therefore no particular incentive to distort the truth in favor of the product or service.

Norway is working on a combination of taxes, subsidies, infrastructure, and other incentives in an effort to end sales of gasoline cars in the country by 2025. In October 2016, Germany’s federal council voted for a nonbinding resolution to end all sales of gasoline cars with internal combustion engines by 2030. In May 2017, India’s power minister announced a plan to have only electric cars—and “not a single petrol or diesel car”—sold in the country from 2030 on. Both the UK and France have said they will end sales of diesel and gasoline cars by 2040. And even China has said it will set a date that will signal the end of all gasoline car sales in the country (although it hasn’t said what that date will be). All these scenarios could have a drastic effect on the uptake of electric vehicles, which would in turn have a dramatic impact on the consumption of oil.

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