Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Jason,

The sales reps complaints are highly expected, as their compensation scheme has been greatly altered recently. From the most recent call:
http://seekingalpha.com/article/3380035-datalink-corporation...

I have to report to you that earlier this week we took action by eliminating approximately $10 million of operating expenses on an annualized basis. We will achieve this reduction through a workforce rebalancing that includes changes to both our storage practice and our go to market models. About half of the savings will come from reduced headcount and half from modifications to our compensation policies. Approximately $2 million of these adjustments will be realized in the fourth quarter of this year, the full impact will be realized in 2016.

(Bold is mine.)

Clearly, the reps have been over-compensated for selling something that wasn't either strategic or especially profitable for the company. I've seen similar problems with salesforces in other companies/industries, and it is never well received to reduce compensation rates for something that has become a loss leader type of offering.


-Another Rob
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.