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Add clear commission steps, and your team will chase them

Oct 10
3 min read

Updated: Oct 11

Public-domain art plate: Gould — A Monograph of the Trochilidae, Plate 280 (1849-1861)
Hummingbirds, plate 280 from John Gould's A Monograph of the Trochilidae (1849-1861).

A small step in pay can work like a big goal for a team.


The study. Economists Peter Kuhn and Lizi Yu studied 103 menswear stores in China in 2016. Each store team got a higher commission rate at 100%, 130% and 160% of its monthly target.


The finding. On the last day of the month, sales were $240 (41%) higher when the target was within reach. Sales were $191 (33%) higher when the 130% step was within reach.

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