Pay for Results, Not Possibilities

Providing incentives to salespeople for signed design agreements oftentimes can lead to clients who don't fit the company or have unrealistic budgets.

Pay for Results, Not Possibilities

A design-build company makes money building projects that it has designed and specified. The big checks come only after a contract gets signed for turning what has been planned into a built reality.

A design agreement being signed does not necessarily mean the potential client will sign the construction contract. In fact, many design agreements simply lead to a lot of activity that often leaves potential clients frustrated. And the design-build company having wasted precious resources trying to do the impossible job of giving the potential client all they want, even though they have an inadequate construction budget.

I am on this rant because some design-build companies provide an incentive to their salespeople to get design agreements signed.

What rant about this? Because one of the most valuable resources the company has is the finite amount of design capacity available. More design agreements signed by potential clients that have not been properly vetted but will sign a DA leads to a lot of wasted design time.

A design-build company must keep this in mind when setting up a compensation program for its salespeople. The salespeople need to be only signing up those potential clients who have been thoroughly screened and, as such, been determined to be a fit for the company and have a realistic budget.

Salespeople who are compensated only for getting construction contracts signed will make that their priority. They will protect the design staff from wasting time with potential clients who are unlikely to ever sign a construction contract.

The results are a happier and more productive workforce and a body of smart, satisfied clients. What a wonderful combination that is worth inventivizing.

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