The short answer is…“it depends.”

Let me tell you a story about Jim (not his real name).  Jim’s sales manager was finding it hard to move Jim away from larger deals in his pipeline that were stuck. In a coaching session, Jim kept mentioning the amount of one deal, so I asked him, “what does money mean to you?” His answer centered on going to concerts, traveling, and sports events. There was a connection between these three things but what? Then it dawned on me…fun was the connection. I asked him if money meant fun, and he responded enthusiastically.

Is he motivated by money, or what the money could be?

Like many salespeople, Jim has a base salary and a commission plan tied to his performance. If you listened to him, you might think he is all about the money. After all, he focused on the amount of the big deal going nowhere rather than the smaller, active deals in his pipeline. This deal could make a decent commission for him and make his number for the year. But it isn’t the money. Money for Jim is the tool for enjoyment and new adventures.

Jim is like other salespeople, even like other people in your company

Money is essential, but the meanings we attach to it are more aligned with motivation and ethics. This is an important distinction when thinking about compensation packages.  People are not motivated by money but by what they believe about what the money will or will not do. This goes for all of your employees, not just your sales team. In a 2010 research study by Markova and Ford, it was found that non-monetary rewards boosted motivation, particularly intrinsic motivation. There is also an interesting study by Misra et al that uncertainty and risk in sales cycles affect a salesperson’s behavior, and how compensation is used is critical.  Other studies have similar findings and an interesting discussion about compensation packages. For some industries with longer sales cycles, it may be time to reconsider how salespeople are measured and thus compensated.

Not a simple answer

Simply stating that salespeople are all about money is missing key factors that could make a difference in how your team performs. The role of a salesperson has certainly changed from a scripted, demonstrate-the-product style to a style of advisor and decision-making guide. On a personal level, each salesperson on your team has her or his meaning. So, for some, it’s about fun, freedom, security, love, status, and other values. Another potential hazard is throwing money at the sales team. This can create a toxic environment that can result in low retention, missed quotas, and other issues. An effective compensation package must consider the length of your sales cycle and measure the right activities that lead to deals to keep each salesperson motivated.

Money does not automatically make a salesperson an elite performer

At the beginning of this post, I said that “it depends” on whether money motivates salespeople. Truly, it is a combination of factors. Salespeople want to feel that their work and how they are paid are aligned with their motivation and ethics. To pay someone to sell without thinking through who they are and how the sales cycle works in your industry sets up the potential for a toxic environment. Underneath it all, it is so much more that motivates your salespeople.

When you think about sales effectiveness at your organization, does it seem like you are close but just missing those unique elements that give you that competitive edge? Looking for a way to understand how your buyer thinks, decides, and reveals information? At The Nova Consulting Group, we believe that professional selling is a craft. With the Advanced Sales Conversation©, you have those missing elements that move your salespeople from competency to mastery. With our deep understanding of what makes and sustains high-performance organizations, we provide integrated solutions that do not replace your sales methodology and yet advance a progressive selling mindset. Be bolder, more insightful, and get results. To learn more about how to master the craft of sales and encourage sustainable high performance, call  (617) 933-7249 or email info@novaconsultinggrp.com.

Photo credit: bizvector/Fotolia