Cheat sheet
Incentives should align with outcomes and limit predictable gaming.
What to check first
Trace commissions, payment collection and customer activation by cohort.
How to make the call
Track cancellations, margin and seller retention before rolling out.
OpenStax · Business markets and purchasing behavior · further reading for b2b & sales
Indian practice case
Fictional scenario
An Ahmedabad software sales team gets paid on signed contracts despite frequent early cancellations.
Reveal the step-by-step solution
- Diagnose the problem.
Trace commissions, payment collection and customer activation by cohort.
- Work through the evidence.
Pay part on signature and part after paid activation, with clear exceptions for issues beyond seller control.
- Recommend and validate.
Track cancellations, margin and seller retention before rolling out.
More Indian cases
Interview question
How would you use incentive alignment to make the decision in this case? Explain which data you need first and what would change your recommendation.
See what a strong answer includes
Pay part on signature and part after paid activation, with clear exceptions for issues beyond seller control. Track cancellations, margin and seller retention before rolling out.