Is more money at risk the key to better performance? Or is it just creating pressure without payoff?

In this episode of Tapped In Sales, Bud, Mike, and Ross break down one of the most common (and misunderstood) topics in beverage sales: how much pay should really be “at risk”?

We tackle real-world experiences—from reps climbing trees to managers misaligning incentives—and get into the math, psychology, and culture behind effective compensation planning. Whether you’re a sales rep, a VP, or someone stuck in the middle, this episode offers clear takeaways for designing plans that actually work.

🔑 Topics Covered:

🎯 Why 100% commission models often backfire

⚖️ The “effort-to-return” ratio: what reps and companies both need

😬 How too much risk leads to soft goals—and resentment

🧩 Why middle managers need different comp structures

📉 Seasonal pay volatility and its hidden impact on culture

🚫 The danger of traditional commissions and "per-case" payout traps

💬 What reps really want when given a raise: trust, upside, and clarity

🔄 Cultural alignment vs. compensation confusion

📊 The sweet spot: why 25–50% at-risk usually performs best

🌲 And yes… Mike nearly died installing a Starlink dish

🧠 Key Takeaway:

More risk doesn’t mean more motivation. It only works when reps trust the system, believe in the targets, and see real opportunity for reward. The right pay plan builds buy-in, not burnout.

📩 Feedback? Questions?

Hit us up at [email protected] — we’d love to hear what you think, what’s working in your market, or what you want us to tackle next.

Chapters

00:00 Introduction and Setting the Scene

03:48 Understanding Risk in Sales Compensation

10:41 Balancing Risk and Reward in Sales

16:32 The Evolution of Compensation Models

19:33 Calibrating Risk and Trust in Sales Teams

21:18 Rethinking Commission Structures

22:55 The Challenges of Traditional Commission Models

26:35 The Importance of Brand Building

35:57 Middle Management's Role in Sales

40:34 Aligning Management and Sales Goals

45:15 The Value of Incremental Effort

46:56 Private Label Beer: A New Frontier?

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About Tapped In Sales:  

Tapped In Sales is a podcast dedicated to beer distributors and beverage industry professionals who are looking to elevate their sales strategies and drive profitability. Hosted by industry experts Bud Dunn and Mike Hall, we dive deep into real-world stories, actionable insights, and the latest trends to help sales teams and managers unlock their full potential. Each episode blends data, strategy, and motivation, making complex topics easy to understand and implement.

This podcast is powered by VXP Tech – the leading Sales Strategy Management system designed for beer distributors. VXP simplifies the complexities of goal setting, variable compensation, and sales team performance, helping you master your market and grow profits, case by case.

Stay tuned for expert advice, fresh perspectives, and tools to sharpen your sales approach!

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