| By Shelly Palmer | Article Rating: |
|
| February 25, 2013 04:42 PM EST | Reads: |
401 |

In the February 17 issue of the New York Times Magazine Robert Draper wrote an article titled “Can the Republicans Be Saved From Obsolescence?” The graphics are awesome; check them out.
Draper reported on a Republican-conducted focus group session in which a researcher asked what younger swing voters associated with the word “Republican.” When the facilitator wrote the word “Republican” on a whiteboard,
… the outburst was immediate and vehement: “Corporate greed.” “Old.” “Middle-aged white men.” “Rich.” “Religious.” “Conservative.” “Hypocritical.” “Military retirees.” “Narrow-minded.” “Rigid.” “Not progressive.” “Polarizing.” “Stuck in their ways.” “Farmers.”
Except for “Military retirees,” “Farmers,” and, perhaps, “Religious,” the focus group could have been talking about legacy media top management, especially the comment about “Stuck in their ways.”
And there is no better example of being “stuck in their ways” than the legacy media way of compensating salespeople, primarily on commission.
As Daniel Pink suggests in his best-selling new book, To Sell Is Human and in his Harvard Business Review article “A Radical Prescription For Sales,” “the reps of the future won’t work on commission.”
What if paying salespeople commissions is rooted more in tradition than logic? What if it’s a practice so cemented into orthodoxy that it’s no longer an actual decision? That’s what a handful of companies have begun discovering. To the surprise of many, these firms are showing that commissions can sometimes do more harm than good—and that getting rid of them can open a path to higher profits.
We know that most legacy media CEOs care about only two things: One, compensating themselves an undeserved, gargantuan amount of money, and, two, higher profits every year.
Don’t these CEOs read? Can they read? That’s a legitimate question, because either they don’t read (or can’t) or they do read about but don’t pay attention to the latest trends in compensation and often make their salespeople perform worse than they otherwise would by paying them the wrong kind of commissions. For example, using yield management programs to determine optimal rates and then paying salespeople commissions based on getting the computer-generated higher rates.
The assumptions management makes are: One, that all salespeople are motivated solely by money, and, two, that salespeople have control over the rates advertisers will pay.
Clearly legacy media managers are motivated by money, so they assume everyone else is. Plus, their bonuses are based on higher profits every year, so they assume all of their salespeople are interested in helping them receive a higher bonus. Wrong, arrogant, and stupid.
But stupid is as stupid does; even Forrest Gump knew that. And that’s what paying salespeople primarily on commission does – makes them stupid. Makes them hunters. And what do hunters do? They kill and eat their prey.
Commissions, especially commissions based on higher rates or higher shares, force salespeople to treat their customers as prey.
But do you think the new media companies such as Google or Facebook, or companies such as Amazon or Apple consider their customers prey? Of course not. Their primary business strategy is to delight their customers, not kill them. Their salespeople are educators who, to use Daniel Pink’s term, upserve their customers, not upsell them.
Yes, legacy media top managers are stuck in their ways, particularly when it comes to compensating salespeople, and they can’t be unstuck from obsolescence any more than the Republicans can.
Read the original blog entry...
Published February 25, 2013 Reads 401
Copyright © 2013 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.
More Stories By Shelly Palmer
Shelly Palmer is the host of NBC Universal’s Live Digital with Shelly Palmer, a weekly half-hour television show about living and working in a digital world. He is Fox 5′s (WNYW-TV New York) Tech Expert and the host of United Stations Radio Network’s, MediaBytes, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment.
- Cloud People: A Who's Who of Cloud Computing
- Cloud Expo New York Speaker Profile: Dave Linthicum – Cloud Technology Partners
- Windows Azure IaaS Reaches General Availability
- Enterasys Spotlights SDN's Impact on Traditional Networking in Upcoming Webinar
- New Relic Q1 2013 Blazes Past Growth Targets and Reaches 40,000 Active Customer Accounts
- NASA's Twitter Account Wins Back-To-Back Shorty Awards
- Big Data Isn’t About the Database, It’s About the Application
- BEA Updates WebLogic SOA Portal for Web 2.0 Era
- Cloud Expo New York | Danger Ahead: Why File Sync Is NOT Endpoint Backup
- Upcoming Bloomberg BNA Webinar Focuses on COPPA Compliance
- Symphony EYC Appoints New Account Manager to Drive Global Opportunities
- Cloud Expo New York: Basics of SSD Technology and Its Use in Cloud
- Cloud People: A Who's Who of Cloud Computing
- Cloud Expo New York Speaker Profile: Dave Linthicum – Cloud Technology Partners
- Cloud Expo New York: How to Use Google Apps Script
- Windows Azure IaaS Reaches General Availability
- Enterasys Spotlights SDN's Impact on Traditional Networking in Upcoming Webinar
- Upcoming Domino's Pizza Investor Events
- New Relic Q1 2013 Blazes Past Growth Targets and Reaches 40,000 Active Customer Accounts
- Scripps Networks Interactive’s Popular Lifestyle Shows from HGTV, DIY Network, Food Network, Cooking Channel and Travel Channel Coming to Prime Instant Video and Amazon Instant Video
- Rackspace Hosting Named “Platinum Plus Sponsor” of Cloud Expo New York
- RetailMeNot Shoppers Trend Report: While Over 8 in 10 U.S. Residents Cite Affordability as Their Top Vacation Priority, a Majority (58%) Could Waste Hundreds of Dollars by Booking Travel a la Carte
- Small Cancers, Big Data, and a Life Examined
- NASA's Twitter Account Wins Back-To-Back Shorty Awards
- The Top 150 Players in Cloud Computing
- Who Are The All-Time Heroes of i-Technology?
- Where Are RIA Technologies Headed in 2008?
- Success, Arrogance, Rise and Fall
- AJAX World RIA Conference & Expo Kicks Off in New York City
- Personal Branding Checklist
- The Top 250 Players in the Cloud Computing Ecosystem
- i-Technology Viewpoint: Attack of the Blogs
- Exclusive Q&A with Jeff Haynie, Co-Founder & CEO, Appcelerator
- Web 2.0 News and Wrapping Up "Real-World AJAX" Seminar
- Passing Parameters to Flex That Works
- i-Technology Viewpoint: It's Time to Take the Quotation Marks Off "Web 2.0"

























