Capping Commissions is the Dumbest Thing A Company Can Do

My son was pretty good at basketball when he was younger. Some games he scored 20+ points, and others much less, but one thing was for sure: he always knew his exact total at the end of every game and wanted to see the score sheet for confirmation.

Now imagine his coach announced a new rule:
“Kids, it’s not really fair for some players to score too many points, so from now on, after you reach 15, we’re not going to count the rest.”

What would happen? His motivation and desire to succeed would disappear. Why spend hours practicing after school if your extra points don’t “count” and won’t even show up on the score sheet?

That’s exactly what happens when sales management tries to artificially incentivize certain products or caps commission once reps sell “too much.” I can tell you exactly what would happen and I’ve seen it many times: reps start sandbagging deals or coasting once they hit the cap. It’s human nature. Why keep pushing if you’re no longer getting paid for the results?

If you want your sales team to soar, pay them well and don’t punish success. When they’re motivated to win, everyone wins.

What has your experience been like? Share with me in the comments!

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