Here’s what Nick says about it:

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Use Weighted Distribution to Reward High Performers
Many sales leaders use metrics with a monetary value, such as revenue generated, to reward their sales reps.

However, rewarding reps based on the money they brought in can be unfair to other reps.


“I’ve found it’s often not the best predictor uruguay telegram data of a salesperson’s effectiveness. For example, if one in a hundred leads is over $1M, and one salesperson happens to land two of them in a quarter, of course, their numbers will be at the top because they got the best lead.”

“While you do want to reward people for closing big deals, you can’t make money a black-and-white descriptor of their effort.”

Instead, Nick recommends using a weighted system to reward reps for their output with the leads they are assigned.

“If you get a hundred leads,” explains Nick, “what is your output on those hundred leads? That number can determine who is number one on the leaderboard, and you can reward them by giving them more leads next quarter.”

This kind of weighted distribution based on each rep’s output with the leads they’re given ensures that everyone has the opportunity to make it to the top of the sales leaderboard, and they’re incentivized to improve their efforts and get more leads in their pipeline.