9-bits by David Kaneda

A tumblog by David Kaneda, creative director at Sencha.


POWERED by FUSION

January 5th 2012

More on Less Commissions »

Evan Gotlib, SVP Advertising Sales & Creative Services for blip.tv, posted a response to the article I posted yesterday which recommended removing sales commissions from your organization. You should read the whole response, but there are a few things I wanted to reply to directly:

The problem with this article is that it fails to account for the different way salespeople are measured and treated within an organization.  Salespeople are usually given a much shorter leash than other types of employees.  The pressure on salespeople to drive revenue is intense.

I agree here, but see this as the problem. Let’s stop treating them differently.

Salespeople (the good ones at least) are like professional poker players.  The chips poker players use and accumulate are how they keep score…  Salespeople (like I said, the good ones) treat their commission in the same way.  It’s a mechanism to keep score and prove you are better than anyone else on the team.

Again, I would see this as a problem. Why are your salespeople not working together to make sales? As a creative director, I cringe at the thought of our company’s designers trying to prove they are better than each other. Rather, I want us all to acknowledge our individual strengths and weaknesses and leverage each other when it would be beneficial.

Sales is a difficult, gut-wrenching, nerve-racking and at times ugly way to make a living.  It requires people to want to have a number on their back every single second of every single minute of every single day.  And if you start to fall off you’re gone.  Miss your number and it’s not “Oh, do better next time, you’re great!”  No.  Miss your number and it’s “Bye.”  The harsh reality of being a salesperson demands compensation that is tailored to the job.

I’m sure I’m being naive, but I don’t believe any job has to be gut-wrenching and nerve-wracking. Maybe it’s possible to run a sales team without them living in fear of missing an estimate and being fired. Maybe those salespeople, the happier, not-living-in-a-dystopian-call-center salespeople, would prefer to have a salary which was dependable. Maybe they’d make better relationships with customers because they weren’t anxiously pushing products, in fear that they won’t have income to support their family next month. Maybe.

Sales is war.  If you look at it any other way you are not cut out for it.  If you are not ready to fight - and I mean really fight - sales is not for you.  And because of this and of the way salespeople are measured by management, I am a strong believer in sales commissions.

And this is where I digress. I am not cut out for sales. I know this. So please take any of my thoughts on the subject with a grain of salt. My only interest is discussing the subject is its impact on a company’s relationship with its employees and customers.

(Source: inc.com)

Taking vacation at Red Frog is encouraged (and even celebrated). And it’s not abused. Ever. By anyone. Simply make sure your work is getting done and make sure you’re covered while you’re away and that’s it—no questions asked.

Give Your Employees Unlimited Vacation Days

Some look at business management techniques like this and think they are pipe dreams or flat out silly. I disagree: I think it’s a shift in our culture and a necessary one. Just as sales commissions train salespeople to focus on the wrong results, so do strict 9-5 environments and time-tracking. Productivity, skill, and value do not relate to minutes, hours, or days. One day I hope to lead an office with unrestricted vacation time, transparent salaries, and proper 15% time.

Why do we pay sales commissions? »

So we did it, and no catastrophes struck us. No earthquakes. No plagues, and no one quit. In the year since we dropped the commission system our sales have gone up. In fact, four of the last five months have been record months.

Fog Creek describes the pitfalls of paying salespeople commissions, but misses my favorite argument: Commissions give salespeople a skewed value system. Sales is an incredibly important (and often overlooked) part of your user experience. By telling salespeople that a sale (and revenue, to a further extent) is their ultimate priority, they put customer experience second. It is a problem akin to dark patterns in UI design: By only testing the quantitative and not qualitative, you run a significant risk of slowly and quietly killing your brand.

AntiAntiSpec »

We’ve all been there. We visit a site like CrowdSpring and see a contest running for $400 with hundreds of entries—some of which are actually pretty damn good. We break into a cold sweat. Is this the value of our work? Has design been commoditized to the point where freelance designers and agencies can no longer make an honest living designing?

The answer, of course, is no. My goal here is not to say spec or contest work is good, I simply want to illustrate why it isn’t evil. Below are some of my views on spec work with anecdotes from my experience as an agency partner, a freelancer, and a customer.

Read More

When you’re in a startup, the first ten people will determine whether the company succeeds or not.
Steve Jobs

(Source: wpbasti)

The Shirky Principle declares that complex solutions (like a company, or an industry) can become so dedicated to the problem they are the solution to, that often they inadvertently perpetuate the problem.
A beef filet cooked for 15 hours by 30 cooks doesn’t necessarily taste better than a cheeseburger.
Information Architects, the creators of iA Writer for Mac and iPad, On Prices and Features. I could quote this post all day.
If you’re going to work… work hard. That way, you’ll have something to show for it. The biggest waste is to do that thing you call work, but to interrupt it, compromise it, cheat it and still call it work.

Seth Godin (via simmy)

Yes.