The Origin of Sales Quotas & Variable Compensation

Aug 17, 2021 | Podcast

Episode 11

Audio Podcast

Todd Caponi

Podcast Episode Description

Sales compensation – commission-only until the 1900’s. And, for good reason. You wouldn’t pay a rep you rarely see a salary, right? Sales are face-to-face. Travel is slow, there’s no real-time distance communication, and no CRM system, so it’s what you did. Sell something, get paid – a lot. Don’t sell something, don’t get paid. 

The birth of salary+commission changed that, and inspired the need for quotas. In this episode, we track that progression, the original purpose of a quota, and how we’ve convoluted that purpose over time. 

Maybe we should consider going back?

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