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?

0 Comments

Other Podcasts You Might Enjoy

Death of a Salesman?

Death of a Salesman?

Death of a Salesman? We've heard it all before - the "death of" this, and the "demise of" that as it relates to the sales profession. Everything is dead, right? Well, like so many other sales-related things, this concept isn't new, either. Experts have been casting...

read more
10 Mottos For Being Your Best – Circa 1937

10 Mottos For Being Your Best – Circa 1937

10 Mottos For Being Your Best - Circa 1937 In 1937, Paul W. Ivey released a second edition of his book, Salesmanship Applied. Chapter 6 is one of my favorites from my collection of books from 75+ years ago. Want to be the best version of you? Instead of recreating the...

read more