Pay Peanuts - Get Monkeys

My dad taught me a lot about business, but one lesson really stuck:

Never try to save money on good salespeople.

Now … him and I (and my grandpa!) were all sales guys, so we are kind of talking our own book… buuuuuttttt…

Being cheap on sales talent is EXPENSIVE.

Say you're deciding between two candidates.

One has all the right attributes, but wants $65K base.

The other has worse attributes but will take $45K.

You might think you're saving $20K by going with the cheaper option!

But watch how the math plays out:

Let's say your average deal is worth $25,000, and you make a 25% margin.

That's $6,250 in profit per deal.

If your cheaper salesperson misses just four deals a year that the veteran would have closed, you've lost $25,000 in profit.

Your $20K "savings" just turned into a loss - and that's not counting the damaged customer relationships and missed referrals.

I'm in the global talent business, but this isn't where I'd try to save in most cases (…there are a few exceptions).

NOTHING makes me happier than writing big commission checks.

You know why?

Because when I'm paying big commissions, it means we're all winning.

When I see one of our salespeople earn $85K total with $30K coming from commission, I'm thrilled.

It means they brought in deals worth multiples of their salary.

That "expensive" salesperson is actually a bargain.

Think about what mediocre sales talent really costs you:

• Deals you'll never even know about because they didn't spot the opportunity

• Prospects who quietly go to competitors because they weren't followed up with properly

• Referrals that never happen because the experience was just okay, not great

Want to save money?

Look at your software subscriptions.

Your non-revenue driving payroll.

Your office supplies.

Your unused services.

But your revenue generators?

That's the last place to get cheap!

I've watched businesses lose hundreds of thousands in potential revenue trying to save tens of thousands on salary.

Yea… don’t do that.

Your competitors might be out there trying to save money on sales talent.

Let them.

You focus on building the best sales team you can afford!

The most expensive salesperson is the one who doesn't make their numbers.

Base salary is just one part of the equation.

Focus on the return, not the cost.

When you find great sales talent, pay them what they're worth.

Because one missed opportunity costs more than what you "saved" on salary.

That's not theory - that's MATH.

Yallah Habibi,

Jon

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