Jan 052011

Which compensation plan is more profitable for a business to implement?

A good friend and mentor of mine, Mark Katz, participated the TEDx Palmacia event recently and in this video he gives an unique insight that will really make you think about what really is most effective for a business to utilize in order to create long lasting success.

This was one of the most thought provoking presentation I have seen in a while. It was really cool to see the video go over the last month. If you are not familiar with TEDx it is without a doubt an amazing organization to pay some attention to.

Hope this got you thinking. If you know of any businesses that you think would see some value in creating an implementation program or would like a compensation evaluation let me know and I can pass the info onto Mark.

Have an awesome day!!

  13 Responses to “Salary vs. Commission Pay Plan”

  1. Joe,
    Very interesting video – I was skeptical at first but the guy makes a lot of sense. I’m thinking about how we can implement this with addictedtosaving.com!

  2. Hi Joe,

    Interesting video. I would say I am motivated by a sense of making a contribution more than anything. As a network Marketer, I live on the commission. Once you get the residual income stream happening, the cheques are very nice! The idea that when you need it, you can quickly generate cash is so much better than being stuck with linear income, no matter how high the salary.

    Freedom to choose every time for me!

  3. Hi Joe,

    Very interesting video. I’m a bit with Jeff on this…I too, was a bit skeptical but he does make some very valid points. and don’t you just love TED? I’ve found some really great things there. Thanks for sharing this vid with us. ~ Linnea

  4. Interesting video,

    I love Abraham Maslow’s work and was surprised to see it used in this context, but it makes a lot of sense to use it to evaluate how well a pay structure is working and why. I always thought that a commission based approach was ideal because it pays for performance.

    I love the point that Mark makes later in the video where he says that since sales people don’t set the price or control service they aren’t able to guarantee the results and that this means that there has to be a balance between process and results.

  5. Thanks for the participation Paul! I think Mark really did a great job with this presentation and it wasnt until the last few minutes that brought it all together to me.

    I appreciate your comment and look forward to chatting with you in the future. Have a great day!

  6. TED is great! It is an interesting topic, it always seems to steam up a bit of controversy. lol

    Thanks for participating. Have a great day!


  7. While commission is great, I definitely think from an owners perspective it keeps things more efficient . Obviously this couldnt work in an MLM arena since there is no control of anyone else efforts.

    Great points! Have an awesome day!


  8. ahh ye,t he TED content is always awesome. i really doubted an argument AGAINST commission, but everyone is different, and we’re motivated by different things. and when we realize that it’s not the money we’re after, but the happy lifestyle we think it will provide us, then you can take that out of the equation and just go straight for what brings you joy. easy to do when you’re self-employed, but no corporation can pay “joy” at this time without putting a pricetag on it!

  9. Great analysis Melissa! When Mark talks about the motivation that goes on with a sales professional and this concept that they “control” their income is what really makes you think “yea, there really is a better and less stressful way to continue to enhance my success and help others.”

    I appreciate you sharing. Have a great day!


  10. Joe,

    Thanks for sharing! He has rather unique approach to business. And useful ideas for chiefs/managers.

  11. It was funny watching this presentation. There were sales people like “You are not talking to my boss!” and by the end of the presentation they were ready to walk him right in and sell his ideas themselves.


  12. He’s got some great points there! It’s an informative video with plenty of food for thought. He’s got ME thinking!

    Willena Flewelling

  13. Mark did a great job! Thanks Willena!!

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