If you’ve ever tried changing someone’s pay structure, you know how emotional it can get. It doesn’t matter how good the math looks—compensation hits people in the gut. That’s why Episode 53 of Tapped In Sales is all about what really happens when you move from guaranteed salary to variable pay.
This isn’t a finance lesson. It’s a psychology playbook.
The Sticker Shock Is Real—And That’s the Point
In this episode, Mike Hall, our Director of Customer Success at VXP, shares what happened when he switched from a flat salary to variable comp.
His reaction? Immediate sticker shock.
Even though he understood the logic, his first instinct was fear. Not hope, not excitement—loss. Because as humans, we’re wired to feel losses more strongly than gains. It’s called loss aversion, and it’s why so many sales teams settle for stability over upside.
But as Mike found out, getting uncomfortable is where growth starts.
“I didn’t see the upside at first—I was focused on what I could lose.” – Mike Hall
Good Pay Plans Create Better Leaders
Mike’s shift in mindset didn’t happen overnight. But once he got past the fear, something unexpected happened: his leadership style changed.
Instead of checking in from the sidelines, he started coaching in the field. Why? Because now, his earnings were tied to his team’s results. He stopped managing and started leading—and it made a real difference.
That’s the hidden power of well-built variable pay: it doesn’t just change behavior. It changes culture.
If Team Leads Are Protected, They Won’t Push
Ross Ackermann, our Founder at VXP, jumped in to talk about another dynamic we see all the time: team leads with soft accountability.
Many distributors keep team leads on high base, low variable structures. The problem? If their comp isn’t tied closely enough to performance, they won’t coach underperformers—they’ll just ride the average.
But when you give them more exposure—more dollars at risk—everything changes. They start acting like owners.
“If I’ve got more downside exposure, I’m a lot more motivated to get that rep back on track—not just talk about it in the office, but do something in the field.” – Mike Hall
Nobody Wants the Promotion Anymore. Here’s Why.
The episode also takes on a hard truth: fewer reps want to become team leads. They’re opting out. And it’s not just burnout or generational differences—it’s the structure.
If taking on more responsibility doesn’t come with clear upside, why do it?
To fix that, you need transparency, shared upside, and incentives that feel worth the stretch. You don’t fix the leadership pipeline with a pep talk—you fix it with a pay plan that rewards growth.
Reps Can Handle the Truth: Show Them Gross Profit
One of the most game-changing parts of the VXP model is showing reps and team leads their impact on gross profit.
It’s not about hiding behind “margin compression.” It’s about putting GP in front of the team so they know what levers they can actually pull—like product mix and smart selling.
Once they know that selling more doesn’t always mean earning more, you unlock a new kind of strategy. One focused on profit, not just volume.
Final Takeaway: Comp Plans Don’t Just Pay People. They Drive Behavior.
If your sales culture feels stuck, start with how your people get paid. The way you structure variable pay says more than any mission statement ever could.
Exposing reps and leads to margin—and giving them real upside—creates alignment, ownership, and results.
🎧 Listen to Episode 53: Don’t Touch My Base on Spotify, Apple, or wherever you get your podcasts.