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In negotiation we learned how to structure deals that increased the pie instead of grabbing the biggest slice of a limited pie. Too bad the masses in the US don't understand that 20% of 250 is worth a lot more than 40% of 100. Ask the average Joe on the street which he'd want and he'll take 40% any day. It's not about your absolute amount, it's all about the relative "fairness".<br> <br> When I was a sales manager I tested our reps. Cap their commissions on sales, or let them earn a higher commission rate when their sales went over a certain target. Guess which months had higher revenues (and higher profits despite lower profit margins)? People will kick butt to get more of the action, but tell them "this is all you can get because more isn't fair" and it's amazing to see how close they get to the cut-off month after month after month.<br> <br> Too bad the masses just can't comprehend the difference between incentive and disincentive.
By Anne

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