Description

Summary

In this episode, Bud and Mike discuss the best practices for setting up variable pay and incentives. They explore different timing intervals, such as monthly, quarterly, and annually, and the pros and cons of each. They emphasize the importance of short-term focus and instant gratification for sales reps, making monthly incentives the most effective. They also discuss the potential use of quarterly incentives for sales leadership and middle management, as well as annual goals for long-term strategic thinking. The episode concludes with a discussion on different types of rewards beyond monetary incentives.

Takeaways

• Monthly incentives are the most effective for sales reps due to their short-term focus and instant gratification.
• Quarterly incentives can balance short-term and long-term goals, reduce administrative work, and provide more time for strategic thinking.
• Annual goals encourage long-term strategic thinking but may lead to delayed gratification and goal drift.
• Different people are motivated by different types of rewards, so it's important to consider non-monetary incentives as well.
• Incentives should be transparent, easily trackable, and simple to understand.

Chapters

00:00 Introduction and Small Talk

03:19 Different Intervals for Different People

05:16 The Importance of Instant Gratification

09:30 Pros and Cons of Monthly and Quarterly Payouts

14:34 Carryover of Missed Goals in Quarterly Incentives

20:50 Encouraging Long-Term Strategic Thinking with Annual Goals

27:16 Exploring Rewards Beyond Monetary Incentives

35:33 Major Player Entering the Hemp Market