The "Staff Competition Increases Sales" Myth

Many books have been written using sports scenariosthe rest of the sales team doesn't even try to win the
as analogies to teach important selling principles. Oneprize. Often they believe that the contest is stacked in
critical component that must be factored into thefavor of your top producers, lowering morale even
sports arena is the element of competition. In sports,further. The overall effect of using competition in the
athletes work to be better at their events, or in theirworkplace, then, is that it will not motivate your people
team positions, than others playing the sport. Teamsto work harder, but will instead, discourage and
strive to defeat the opposing teams with participantsdemotivate your staff.
working to do their best to win. On the surface, thisThe best incentive programs are designed where
concept of competition seems like a valuable tool toevery participant can be a winner. By having sales
implement with a sales organization. In fact throughoutprofessionals compete against their past sale
this manual sales professionals have been referred toperformance levels, you can generate a lot more
as members of a sales team. The logic is that inenthusiasm for your contest and avoid the morale
sports, competition encourages the athletes to do theirissues that a head-to-head competition creates. A
best, therefore in selling, competition will also encouragepoint or chit system for a grand prize drawing is an
sales professionals to strive for better sales results.effective tool as well. Assign points for improved
When you set up sales contests that pit salesperformance and then draw a winner from the points
representatives against each other for cash or a tripor chits placed in the larger pool. With this approach,
to the Bahamas, the temporary gains you achieve areeach sales staff member has a shot at the grand
more than erased by the long term morale problemsprize and can be winners of smaller prizes for the
this type of competition creates for your salenumber of points accumulated during the sales contest
organization. What usually happens is that one or twoperiod.
people win the competition every time. After a while,