Simple Incentives Create Great Results
The Cure For FOMO Is Profit. Why We Cannot Be Happy Everyday.
Every Sunday I share three useful ideas in the pursuit of a rich life.
This week:
Simple Incentives Create Great Results
The Cure For FOMO Is Profit
Why We Cannot Be Happy Everyday
I am a part of Zero1 by Zerodha, a curated network of high quality storytellers that build what this generation needs and not what it needs to be sold. You can find all past editions here. Also check out my Master of the Deal podcast and the M&A This Week newsletter.
Let’s dive in 👇
(1) Simple Incentives Create Great Results
We do millions of dollars in sales in one of the businesses I am involved in. My prediction is that we will be a billion dollar company.
Being a part of that story by playing a pivotal leadership role motivates and inspires me to go above and beyond what is normal. Cold calling, jumping on demos, training, hiring, traveling, even writing the exact playbook to get responses; I do a lot more than just manage. I get my hands dirty because I believe in the mission. It's a battle out there. And there should be nothing beneath you when it comes to showing the immense value you bring to clients.
But here is the brutal reality:
If I don’t drive sales, I don’t deserve my seat at the table.
No sugarcoating that. I am in charge of bringing in the dollars. The growth machine does not run if we don’t feed it with newer, bigger clients.
On a recent sales and marketing leadership call, we were debating incentives. Should we pay business development managers for booking meetings or getting RFPs - even if the deals don’t close?
I said that:
Incentives drive behavior. I am not in favor of complications. When I buy a watch, I don't want to see all the bells and whistles; I just want to see the time. Similarly when I want sales, I want my team to have just one number in mind. Simplicity is the ultimate sophistication.
If the company wants to add $100 million to the top line, then the individuals should be rewarded only when they help get us there.
My job as a leader is to ensure every team member is doing the activities that lead to meetings that lead to wins. If some people don’t have the patience for the process or the thick skin for rejection, that’s fine. We’ll find those who do. This game is not for everyone.
And no AI is not going to replace sales. At least not the kind that requires human connection. It may help you write better or sound smarter. But it can’t make eye contact, crack a joke, exude energy, shake hands with confidence, think on your feet, or ask questions and find solutions on the spot when you are sitting face to face with a decision maker. The "feeling" part of sales? That’s still human. And it always will be.
So if you’re a leader who is setting incentives for your sales teams, especially high stakes, high touch sales, remember:
The only thing that will matters is aligning your company’s revenue targets with your team’s income.
Make it very easy for them to know how much money they will earn by making the sale happen.
(2) The Cure For FOMO Is Profit
At Happy Ratio, every time a teammate forwards me news of someone getting funded or making a lot of money from an exit, I tend to ignore it — because I know it’s his fear of missing out (FOMO) at play.
I keep bringing him back to one point: profit.
I say:
“No one is going to give us more money or fund us until we turn profitable. And to turn profitable, we need to focus. We need to become the best in the world at one thing. If we can become the best at just one thing, you won’t even need anyone’s money. Free cash flow will drive our growth. Till then, we’re on our own.
The truth is FOMO (the fear of missing out) is real. So many others have come after us and gone further, faster. They’ve done well. That’s when I question myself.
Could I have done things differently?
Been more involved?
Taken another approach?
Maybe. But even if I followed someone else’s playbook, the results wouldn’t be the same. Everyone’s journey is different. The mistakes I’ve made — I had to make them to be where I am now. And when we do succeed, they’ll make perfect sense.
Last week, my friend Akarsh called and said:
“Harsh, I think you were a little too early in the drinks game. Can you get back into it now? Everyone doing protein is making crazy money — but it’s only happened in the last year.”
A long-time customer also wrote to say:
So yes — we did some things right. We just couldn’t scale the product fast enough to hit profitability.
Here’s what I feel:
FOMO is not a good reason to get in the game. And it can’t be what drives you once you’re in. You need focus. You need discipline. You need profit.
And if you stick to becoming the best at one thing — success will find you.
(3) Why We Cannot Be Happy Everyday
Some days I wake up with energy and enthusiasm. Other days I feel tired and blah. I think humans are designed to fluctuate. But we each have a certain emotional baseline.
My wife, for example, is usually chirpy and in a good mood. I asked her if she was always this way. She said yes. Then she added, “I choose to be happy.” That’s when I challenged her—was it something she pushes herself to feel or just a default setting? For her, it’s the default.
Even when I’m sulking or whining about something, she’ll say, “Don’t stress. It’ll all happen.” If she’s going through her own struggles, she doesn’t stay in a negative space for long. I can’t tell you what a blessing it is to be around someone that positive.
I’m reminded of what I once heard Nassim Taleb say:
“If you know exactly what will happen every minute of your day, you’re half dead.”
His point: life is meant to be unpredictable. Stress is part of fully living. Embracing it is how we become antifragile.
Regardless of whether you lean toward the negative or the positive end of the spectrum, be ok with the emotional swings. And lower your expectations. If you force yourself to be happy everyday, you will end up unhappy more often than you need to be.
👋 I’m Harsh. I build businesses and share useful ideas in the pursuit of a rich life. Read by 7500+ readers every Sunday. If you’re curious about what I’m building, here’s where I spend most of my time:
Ideals VDR - We are the world’s most secure and highest rated Virtual Data Room provider. Used by investment banks and companies to share confidential documents. Watch a short demo.
Happy Ratio - We make healthy, chef-made wraps from fresh ingredients that are gut-friendly, packed with flavour, and never boring. Designed for daily eating, these wraps help you feel full, stay sharp, and save money. Explore our menu and taste the difference.
Marcellus Investment Managers - This is where my personal investments compound quietly and consistently. Their philosophy of investing in clean, honest, cash-rich businesses lets my money grow while I sleep. If you believe in long-term wealth creation without daily noise, explore their MeritorQ and Global Compounders portfolios.
Harsh Batra (Connect with me on LinkedIn)