"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 project-based company, salespeople are heroes for closing large, complex, custom projects. This incentive structure is directly opposed to a product model that requires standardization. The transition to product will fail unless sales compensation and culture are realigned to favor standard product sales.

By fixing the upfront cash collection, the business generates enough surplus to potentially double sales commissions from $50 to $100 per deal. This elevated pay structure attracts a completely different caliber of salesperson—"an order of magnitude better"—who can close more deals per day, dramatically accelerating growth without adding financial risk.

At the $1-10M ARR stage, avoid junior reps or VPs from large companies. The ideal first hire can "cosplay a founder"—they sell the vision, craft creative deals, and build trust without a playbook. Consider former founders or deep product experts, even with no formal sales experience.

To conserve cash, especially in a downturn, founders can pay key employees 10-30% below market rate in salary. The key is to compensate for this deficit by offering double or triple the industry standard in equity. This strategy attracts top talent aligned with long-term success while keeping the company's cash burn rate low.

While bonuses tied to revenue incentivize employees to perform specific tasks, they are purely transactional. Granting stock options makes team members think holistically about the entire business's long-term health, from strategic opportunities to small cost savings, creating true psychological ownership.

Sales leaders wrongly assume compensation is the universal motivator. However, assessment data shows money is the primary driver for only about 55% of salespeople. To create effective incentives, leaders must uncover individual motives, which may include free time, recognition, or charitable giving.

Sales compensation is the most powerful lever for changing a sales team's behavior quickly. More than training or directives, incentives tell reps what they are supposed to do and why, directly shaping their daily actions and strategic focus.

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.'