After losing her commission base by moving cities, Mary Kay eliminated geographic sales territories. This policy allowed consultants to keep their teams and income streams regardless of relocation—a huge benefit for military spouses. It transformed potential competitors into collaborators and fostered a culture of mutual support.
"Mercenaries" are transactional reps who perform well but leave when conditions change. "Patriots" are mission-driven team members who build a winning culture. While startups may need mercenaries for early traction, long-term success requires actively cultivating and hiring for patriot-like qualities.
In a remote workforce, scrappy problem-solving is often invisible. Leaders must create a system to surface and publicly celebrate reps who use creativity to overcome blockers. This not only rewards the desired behavior but also transforms individual wins into scalable learning moments for the entire team.
To ensure genuine collaboration across funds, Centerbridge structures compensation so a "substantial minority" of an individual's pay comes from other areas of the firm. This economic incentive forces a firm-wide perspective and makes being "part of one team" a financial reality, not just a cultural slogan.
To motivate and retain employees, especially in a challenging market, leaders must shift their perspective from 'they work for me' to 'I work for them.' This servant-leadership approach involves genuinely caring about your team's well-being and success, which fosters loyalty and improves performance.
Elite salespeople understand that closing deals requires a team. They actively cultivate advocates within their own company—in operations, support, and finance—by treating them well and recognizing their contributions. This internal support system is critical for smooth deal execution and ensures they can deliver on client promises.
To solve misalignment, the company cascaded OKRs from the CEO down. Critically, regional leaders were made 'champions' of key pillars like user acquisition. This gave them ownership and a direct voice in shaping product solutions, turning potentially adversarial relationships into collaborative partnerships.
Don't finalize a comp plan in an executive silo. Share the draft with trusted, top-performing reps and ask them to break it. They will immediately spot loopholes and unintended incentives, allowing you to create a more robust plan that drives the right behaviors from day one.
Instead of treating high commission payouts as a pure expense, view them as a marketing asset. Actively ensuring it's known that top reps make a lot of money serves as the best possible recruiting tool, attracting other A-players to your company.
Sales professionals should think beyond individual relationships and intentionally cultivate a collective culture among their customers. This involves creating shared experiences and fostering connections between clients, turning a portfolio of disparate accounts into a unified community.
Structuring compensation around a single, firm-wide P&L, rather than individual deal performance, eliminates internal competition. It forces a culture of true collaboration, as everyone's success is tied together. The system is maintained as a meritocracy by removing underperformers from the 'boat.'