In Defense of the Club Trip

One of the most memorable trips I ever took was to a remote island in the West Indies that was home to a five star hotel, a tribe of monkeys, and not much else. For a week, my partner and I were pampered with gourmet meals, beachside massages, and luxury gifts each night – and my company paid every expense.

Spring is here – and if you pay attention, you may see that your company is sending some of your sellers (and their guests) off on all-expenses-paid trips. And for those who are first hearing about it, these experiences can be controversial.

Some see these trips as evidence of a company’s skewed priorities. The over-the-top luxury makes them expensive, and other employees often wonder why they don’t get the same treatment. They may feel that the company values sales above all other departments. They may also feel that the money spent on these trips could be better spent elsewhere.

I understand these concerns, but I’m strongly in favor of sales club trips. When they’re done right, the return on investment is significant. They drive performance, boost morale, and improve employee retention – and are an important way to recognize the sacrifices that salespeople and their families make.

Sales Club Trips: They Really Are All About ROI

For tech sellers, Club trips have long been considered “standard components” of a compensation plan. Top job candidates ask about them in their interview process – and weigh them as a key value lever in the overall compensation package they negotiate. And while perhaps only 5 or 10 percent of sellers will earn a trip each year, a company that doesn’t have a Club program will likely need to offer even higher base salaries and commission rates for all sellers to attract talent.

In my years of leading sales teams, I’ve learned that the best sellers look at their incentive plan as a set of rules in a game they intend to beat, and immediately find all of the unique loopholes and tricks to maximize the end score, their compensation. A sales club trip is a key part of that incentive structure.

A well-structured trip creates clear, aspirational goals. It’s something tangible that sellers can strive for, directly linking their efforts to a significant reward. This can drive performance and increase revenue, and – in a world where the top 10% of sellers typically are driving 65% of the company’s revenues – the results far outweigh the trip’s cost.

But Club trips are more than just a component of compensation or reward for a job well done. They’re a strategic investment. They align the sales team’s goals with the company’s objectives, providing a powerful incentive that is referenced all year long. Sellers work a little longer, and negotiate a little harder knowing that these incremental efforts can be the difference that puts them on the winner’s list or not.

Sales club trips also improve employee retention. They make salespeople feel valued, increasing loyalty and reducing turnover. This is a huge cost saver, as replacing sales staff is time-consuming and expensive – both in hard dollar costs and lost opportunity costs of sales territories that go unstaffed for a period of time.

To achieve club-level results, top sellers often need to “run the board” on their pipeline – often finishing a year of great performance with little or no opportunities left unsold.  That means they’ll need to spend a significant amount of time at the start of the next year re-building pipeline – and great sellers weigh whether to do that at your company, or to do the same work starting over somewhere else.  Having a Q2 Club trip to look forward to is often the incentive that keeps them in their current role – and by the time the trip has rolled around, they’ve done the work to set themselves up for another great year with you.

Addressing the Controversy

Of course, I can’t ignore the fact that sales club trips can create a perception of unfairness.

Each year, I hear from other departments that they think the Sales Club trip is a sign that their own contributions aren’t as appreciated or valued as highly as salespeople – “who make enough money to take their own vacation, anyway.”

It’s important to acknowledge these feelings and address them head-on. We can’t allow a sense that sales is “more important” than other roles to take root – and every other department in the company does have a role to play in supporting their success.

And yet, Sales tends to have much more risk associated with their performance than anyone else in the company. A helpdesk professional who misses call resolution targets for two quarters in a row is likely to get a strong talking to – a sellers who misses quota for two quarters is likely to be out of a job.

We also need to recognize that Sales is a job that is taxing in a way that other roles in the company just aren’t. It involves long hours, lots of last-minute emergencies, constant rejection, and a lot of pressure to make things happen that are often out of their own control.

These challenges often extend to the salesperson’s family life. The irregular hours and travel required in many sales jobs can mean missed family events at the last minute – and an imbalance between work and home life. Rewarding the salesperson and their life partner is a powerful way to acknowledge their sacrifices and the crucial role the entire family plays in supporting the salesperson’s success.    

The Peak Performers Alternative

Increasingly, I’ve seen companies give up on defending their “sales only” club trips, and offer a company-wide “peak performers” incentive that’s achievable by the top 5% of performers in every department. These “peak performers” trips can be a good way to solve the perception of unfairness by recognizing and rewarding top achievers from all departments, not just sales. They send a message that the company values excellence across the board.

However, an all-company approach requires careful planning. It can be challenging to maintain the same level of exclusivity and high-end experience when the pool of winners is larger. There’s a risk of diluting the quality of the trip – and a low-budget trip to a destination employees can easily access on their own will diminish its impact.

While the overachievement of a quota is a straightforward criteria for sales professionals, the criteria to qualify as a “Peak Performer” in non-sales roles is harder to quantify. Standards must be clear, objective, and applied consistently across all departments.

For companies that decide to go the Peak Performer route, they also need to be ready to make a long-term commitment to it. It would be very difficult to go back to a sales-only model after opening it up to the entire company – and expectation for the quality, uniqueness, and luxury of these experiences only get higher each year.

Finding the Right Balance

Ultimately, the goal is to create a system of rewards and recognition that motivates employees and feels equitable. Whether it’s a sales-only club or an all-company peak performers program, transparency and clear communication are essential.

Reward programs should align with business goals, incentivize desired behaviors, and contribute to a positive and productive work environment. By carefully considering all factors, companies can create reward and recognition programs that drive success and foster a culture of appreciation and healthy competition.