and yet I still think a $200,000 deal requires more work and yields more profit for the company than a $5,000 deal, and thus I should be rewarded for that additional effort.
Interesting. I wrote a particularly tricky piece of code today. It required much more effort on my part than some simple code I wrote last week, so I need to be rewarded for that additional effort. Oh wait, I am rewarded with a salary for doing what I was hired to do - solve problems writing code.
What FogCreek is saying is that it should be the same thing in sales. You're hired to do sales. It doesn't matter if it's $10 or a million dollar deal, that's your job. Why should it be any different than any other salary person?
Another interesting thing to me is when sales people talk about all their great sales, but seem to forget that someone created the product they are selling. If thought about in that manner each sale should cause the entire company to get paid. In fact, that's exactly what pays the salaries of everyone who works there.
The difference is that the additional effort put forth in the sales process yields direct, tangible profits, whereas coding efforts are not always as easily quantified.
Think of this from the perspective of an owner. If you are going to choose between two sales guys, one who pulls in $10 deals and another who pulls in million-dollar deals, who are you going to choose? OK, now that you've chosen the latter, how much are you going to pay him? Since there's no simple way to come up with an arbitrary worth, say you settle on a nice big offer for him. What if he stops producing stellar numbers (due to personal deficiencies or market forces)? Do you fire him or reduce his pay? Doing either is sure to infuriate him if external forces are at play, so the only alternative is a merit-based commission system.
I'm not saying it's right for companies who only pay sales commissions and don't reward coders--there absolutely should be profit sharing and bonuses for programmers with measurable contributions to the company--but this process is in place simply because sales' efforts are infinitely easier to quantify and reward (from a profitability standpoint) than are programming efforts.
Interesting. I wrote a particularly tricky piece of code today. It required much more effort on my part than some simple code I wrote last week, so I need to be rewarded for that additional effort. Oh wait, I am rewarded with a salary for doing what I was hired to do - solve problems writing code.
What FogCreek is saying is that it should be the same thing in sales. You're hired to do sales. It doesn't matter if it's $10 or a million dollar deal, that's your job. Why should it be any different than any other salary person?
Another interesting thing to me is when sales people talk about all their great sales, but seem to forget that someone created the product they are selling. If thought about in that manner each sale should cause the entire company to get paid. In fact, that's exactly what pays the salaries of everyone who works there.