There's a memorable scene in the movie “Glengarry Glen Ross” in which a sales manager, played by Alec Baldwin, addresses his staff and tells them of a twist to their new monthly sales contest. “The first prize is a Cadillac El Dorado,” he says. “The second prize is a set of steak knives, and the third prize,” he says, glaring at his sales force, “is you're fired.”

This was his idea of motivation. And many years ago it was how most sales managers “motivated” their salespeople: through fear and intimidation. That doesn't work in today's selling environment.

“Intimidation is, indeed, only a short-term motivator,” says Tom Reilly, author of several sales books as well as Industrial Distribution's monthly Strictly for Sales column. Motivating salespeople for the long run takes time, effort and a personalized approach that involves finding out what makes each member of your staff tick.

Motivating a sales force is one of the most difficult challenges a manager faces.

And it's no wonder. Distributor salespeople today are fighting for a smaller piece of the industrial pie, price competition is increasing, margins are tight, paperwork is increasing and customers are more demanding. Some experts say salespeople are becoming more easily burned out—a reason many managers are finding it increasingly difficult to recruit and retain high-quality salespeople.

“For starters, managers must realize that each salesperson has to be treated differently as far as motivation goes,” says Reilly, who has trained more than 100,000 salespeople in his career. “What motivates one salesperson might not motivate another.”

Reilly and other experts say it's important to take the time to learn what motivates each person. And it's not always money.

“In fact, some studies suggest that only one-third of salespeople are motivated totally by money,” says Reilly. ”It's a secondary motivator. If it were the primary motivator you'd have only one sales compensation plan in place and there'd be no need for any other type of recognition program. People don't work for the money; they work for what money buys them.”

Some studies show that personal satisfaction, respect and recognition rank much higher than money.

Warren Buffet, the legendary billionaire and investment guru, would seem to agree. Buffet once said: ”I have two duties. The first is allocating capital; the second is to help 15 to 20 senior managers keep a group of people enthused about what they do even if they have no financial need whatever to do it. At least three-quarters of my managers are rich beyond any financial need. And therefore my job is to keep them interested enough to want to jump put of bed at 6 a.m. and work with all the enthusiasm they did when they were poor and starting out.”

Reilly points out that, “Each one of us has a different level of need. A sales manager should take the time to stand back and say to himself, 'What motivates this person? Is it recognition?' The only way you can really find out is to get to know that person, by going on sales calls with them at least once a month and finding out what makes them tick.

“We've found that 76 percent of the top-achieving salespeople make joint calls with their sales managers on a regular basis. They get frequent feedback from their managers and they're motivated by a number of factors. But one of the main things is that the work is interesting and they're challenged on the job.”

It's important to give feedback to all members of the sales staff. Managers often give feedback to their lower performers, but not to their top achievers. Everyone needs feedback, the experts say.

Dirk Beveridge , president of consulting firm 4th Generation, agrees.

“The worst thing for a salesperson is if they operate in an environment of insecurity,” Beveridge explains. “People are motivated to perform when they feel secure.”

And he's not just talking about job security. When a sales manager goes on the road with a salesperson, he's showing an interest in that salesperson's desire to succeed, Beveridge says. Those meetings should allow managers to have heart-to-heart conversations about the salesperson's results, but also about his skills and how they can be improved. Managers must back up their salespeople and offer solutions to problems when asked.

Beveridge adds that managers need to stimulate their sales force and convince them that their job is meaningful and important. Too many managers have a top-down approach when it comes to sales strategies and growth. Get your staff involved in developing and implementing a strategic plan so they buy into it, he says. Share economic data and information with them. If you do, you're more likely to meet sales forecasts and goals, he says.

“As a sales manager, you need to get your staff involved in the planning and decision-making process of how specific goals can be met,” Beveridge explains. “The more you do that, the more they will be committed to making the process work because they have bought into the program.”

Sales managers must also “make it easy” for their sales staffs.

“By that I mean, all too often we re-invent the wheel every time a salesperson writes a proposal. It becomes a de-motivator,” he says. “You should find ways to search best practices, systemize them, and provide the right tools for them.”

In his book, “Sales Marketing & Continuous Improvement,” author Daniel Stowell says that, “Performance-driven companies recognize that positive recognition is the most effective way to reinforce desired behavior. People tend to repeat the behaviors that they believe will be rewarded. Recognition is a critical factor in improving and motivating a sales force.”

Reilly says salespeople are motivated in two ways: intrinsically and extrinsically. Intrinsic motivation is what Buffet was talking about; it's what gets you up in the morning and why some people can't wait to get to work.

“When you work in a job that you love so much that you'd really do it for nothing, that's an intrinsic motivator,” says Reilly. “If a person is driven by money, titles, recognition, then that person is extrinsically motivated. It's up to the sales manager to see just what type of salesperson he has on his staff and how she or he can be motivated.”

What's important is building each salesperson's self-esteem. Sometimes that means nothing more than a pat on the back—recognizing top performers at an awards ceremony, giving them a night on the town, or asking them to detail their accomplishments at a national sales meeting.

One of the most important—and delicate—problems facing sales managers is challenging salespeople by giving them attainable goals. The worst de-motivator for any salesperson is looking at his plan for the year and knowing that his goals can't possibly be met.

“Too much challenge frustrates people and too little challenge bores them,” says Reilly.

A few years ago, a distributor we talked to had a unique way of motivating his sales force. His company ran a year-long contest among the sales staff, with a trip to Hawaii as the grand prize. The thing is, the distributor's sales manager didn't just send the contest information to his staff—he sent it to their spouses as well. And monthly reminders were mailed to each salesperson's home. The company had a record-breaking year.

Another distributor told us he likes to think of his salespeople as his customers.

“They probably wouldn't like that comparison, but it's true,” he says. “As a salesperson, you're trying to find how to make the sale by approaching it from the customer's standpoint. You want [the customer] to be comfortable with the purchase and understand how that product can benefit them.

“It's no different in working with a salesperson. I'm trying to 'sell' them with how our plan can benefit them by answering the question, 'What's in it for them?' They have to be comfortable with the plan and how it will be executed. If you don't, your plan will never be a success.”