or, rather, like they don’t get a salary.
I had the distinct pleasure of learning leadership in the Direct Sales world. For those unfamiliar with the industry, it may surprise you to learn that most, if not all of the estimated 8 million people who work in Direct Sales in North America work as “independent contractors”, meaning, that they’re not salaried. Their income is directly tied to their results. No ceiling. No floor. As a result of this unique compensation structure, Direct Sales is certainly not for everyone. But today I’m not talking about what it is to be a consultant in the Direct Sales world, I’m talking about what it is to be a leader.
Think about this – when you lead a team of independent contractors, you don’t have the (dubious) fallback of being able to say, “Do it. It’s your job.” You can’t force people to do anything. If they don’t want to show up for meetings, they don’t have to. If they don’t want to work during the peak seasons, they don’t have to. They have almost complete freedom over how and when they work their business. But, as a leader, your compensation is also completely tied to your team’s performance. Which makes for a unique situation.
How do you motivate your team to work, when you don’t have the usual management fallbacks of “Do it because it’s your job?”
Let me tell you:
1. You provide time sensitive incentives. (Sell X in timeframe Y, win a trip)
2. You recognize top performers like crazy. (in newsletters, at conferences, at weekly meetings, etc.)
3. You work to understand them what their goals are, and then show them what level of activity is required to achieve them.
4. You identify identify potential leaders in your group, tell them such, and ask them to step up.
5. You demonstrate that you care. About them first, yourself second.
I would suggest that the best managed companies in the world are already doing these things, regardless of what their peoples’ compensation structure looks like. I would suggest that while salaries are an important aspect of an employee’s “compensation package”, it’s no longer enough to get the most out of your people. Employees want more. I’ve seen case after case where managers who utilize some of the tactics above see their teams rise to new levels of performance. And the best part? The best part is that 4 out of 5 of the best practices listed above are completely free. They just take a little effort and a little caring on your end. You can do that.
