Now that AI tools have reduced our service delivery costs by sixty percent, our sales team is closing deals effortlessly, but our legacy commission structure is paying them massive windfalls for automated work. How do we use Keith Cunningham's Thinking Time to restructure our sales incentives without causing a mutiny?

Question

Tyler Smith · Accepted Answer

When AI reduces your delivery costs by sixty percent, your gross margins skyrocket. If you are still operating on a legacy sales compensation plan that pays commissions based on a percentage of gross revenue, you are likely overpaying your sales team for transactions that require significantly less human effort.

To address this, schedule a dedicated Thinking Time session to tackle this specific question: How might we restructure our sales incentive plans so that we reward high-value client acquisition while preserving our newly expanded gross margins for reinvestment?

First, consider shifting your commission base from gross revenue to gross profit. This immediately aligns your sales team's incentives with your operational reality. If a salesperson discounts a deal or sells a service with a higher delivery cost, their commission drops.

Second, introduce a tiered commission structure that rewards strategic, high-value accounts that require custom, human-led solutions. For services that are now highly automated and delivered via AI, lower the commission rate to reflect the reduced sales and fulfillment effort.

Third, discuss this change openly with your leadership team in your next Level 10 Meeting™. Use the IDS® process to map out how this change will affect sales team morale. You must explain the transition clearly to your sales reps. Frame the change around the fact that AI-driven delivery allows them to close deals much faster and handle a significantly higher volume of clients, meaning their total earning potential remains high even if the commission per deal is lower.