One of the most valuable things in business we possess are our contacts. While these might be family and friends they are also business associates, customers, prospective clients etc
A good contact might be worth a great deal to your business. The challenge is how do you value that contact in terms of compensation?
If you are trying to sell to a major corporation, a salesperson might spend many months developing the relationships and interacting with various people while getting up to a certain person. Another salesperson might have that same certain person on speed dial and with one phone call they can get to the decision maker.
Should the person who spent months working to get to that person be compensated more because he put in all of that time?
Should the person who made one phone call to get to that person be compensated more because he spent years developing the various relationships to get to that point?
It’s easy to value the man hours spent working to get from point A to point B and easy to undervalue the relationships built up over years.
I’m not sure what the answer is but it’s something people really should spend more time thinking about.
Have a great day!