A highlight from How to Incentivize Marketers The Right Way #1928
To optimize your site for low time. And one easy way to do it is use the host that Eric and I use dream host to just go to dream host or Google it, find it, check it out, and it's a great way to improve your low time. Today we are going to talk about how to incentivize marketers the right way. But first and foremost, Neil, why is it important to even think about incentivizing people? A lot of people whether it's sales, whether it's marketers, whether it is project managers or designers, and a lot of organizations, people have bonus structures, people want higher titles, promotions, all this kind of stuff. The best way to incentivize others is to really go out there and give them something that is very tangible. See what marketing is a little bit different because you can see it based off of traffic or conversions or sales, at least if it's self service or leads. And if you figure out a metric, you'll get them to push hard towards it. And that means your business is going to go faster. Yeah, so the Charlie Munger quote, I always use is Latin Neal. I don't know what they're saying. Show me the incentive and I'll show you the outcome. So if you think about, let's say I'm working with Neil, I have to think about what's in it for Neil, right? So if I think about because everyone's selfish, what's in it for them first and then maybe we can figure out what's in it for us together. Then that's creating an incentive, right? That makes sense. You want to create something that motivates people. And when you think about incentives in the early days, for me, at least, I'm talking about for a second. I used to make it so complex. You got to hit these three or four different things. Ideally, you make it very simple and to the point. So if you're able to lift conversion rate by a 100% or so, maybe you get 20% of the profits on that. Or let's say you're an agency and you're managing ad spend for a client. Maybe you're collecting 10% of ad spend on a client paying a hundred grand, right? So that you get $10,000. Maybe you give ten or 20% of that. So $2000 to your paid media manager. And that way you're incentivizing them accordingly, right? So there's a lot of different ways to do this, but the ideal when you think about incentives try to keep it very simple, try to keep it very understandable and try to keep it very objective because you don't want people pushing back and making it like a big argument because once you start adding an incentive, it will become an expectation for people. Yeah. And what I like doing is I like giving each marketer one incentive. So if they're in charge of content, all right, well, how much do you traffic to the blog at versus what it was at versus 12 months from now or 6 months from now? Whatever your milestone is. But keep your metric really simple. If someone's doing paid advertising, you know, it could end up being. They had to hit a minimum threshold in spend. And it is cost per conversion. So in essence, can they end up scaling it so getting to a certain spin and hit a specific cost per conversion or under that? And if they do you're good to go if not then don't give them the bone. It's like making it black and white just makes it so much easier in marketing and it's very doable. It was very possible to do that. Here's a question Neil. Does everybody get an incentive? It depends. It's harder for the marketing associates and stuff like that. It's easier for your VPs or people who are running division or someone who's in charge of specific channel. Yeah, so and the reason I asked that is because there's a very idealistic way of looking at where everyone should get an incentive, and that's how I thought in the early days. But as I gained more experience, you know, the last couple of years realizing that, hey, it probably makes sense to give it to the people that are probably your top performers out there because what ends up the quotes here also is salaries what keeps butts and seats. Incentives drive outcomes, right? Instead of drive the performance that you're looking for at the end of the day. And when I try to give everyone an incentive in some experiments that I've tested in the past, not everyone has that motivation, not everyone has that motivation to push and perform. But your top performers, your a players, right? I hate to say ABCD players, right? Or F players, but your 8 players are very motivated, and they want to be compensated accordingly. And they want to be rewarded accordingly. If they find out that everyone's getting incentive and not everyone's driving it, they're going to become demotivated. So you want to keep them motivated and incentives again drive outcomes. So that is it for today.