There’s a hidden force that drives nearly every decision people make. It determines whether employees go the extra mile, whether customers buy today or wait until next year, and whether your business thrives or struggles.

That force? Incentives.

I saw it firsthand while managing a 542-unit apartment complex in Dallas, Texas. We had several third-floor walk-up units sitting vacant for much longer than others. When I asked the team why, they shrugged and said, “People just don’t want those units. They’re too hard to lease.”

Sounded like a challenge to me.

So I told the team, “I’m taking the property manager to lunch to review the quarterly performance. While I’m out, I’m offering a triple leasing bonus on any third-floor unit leased today.”

The team seemed skeptical. But when I got back from lunch, something unexpected had happened.

Three units had been leased.

The same “unrentable” units. The same potential residents. The only thing that changed? The incentive.

Why Incentives Work (Even When Nothing Else Does)

Charlie Munger calls this Reward and Punishment Superresponse Tendency—people don’t just respond to incentives, they over-respond to the right incentives!

It’s why:

• Sales teams suddenly “discover” new customers when commissions double.

• Fast-food employees shave seconds off drive-thru times when there’s a bonus at stake.

• Amazon warehouse workers move faster when their performance is tracked and tied to rewards.

Incentives aren’t just about money. They shape behavior in ways most people dramatically underestimate.

Alex Hormozi built an entire business empire by structuring offers that make people act immediately. In $100M Leads, he explains how the right offer flips hesitation into action. The best incentives remove friction and make the desired action the obvious choice.

How to Use Incentives to Get What You Want

Incentives can work for or against you. Get them wrong, and you’ll create the wrong behavior. Get them right, and things that once seemed impossible become effortless.

Here’s how to design incentives that actually work:

1. Make the Reward Immediate – The faster people see results, the stronger their response. Example: Paying a quarterly bonus won’t change daily behavior. Paying a daily bonus will.

2. Align the Incentive with the Goal – You get what you pay for. If you reward “hours worked,” people drag out the job. If you reward “units completed,” work gets done faster. Example: FedEx struggled with slow overnight sorting—until they switched to paying per shift, rather than per hour. Suddenly, workers moved faster and went home earlier.

3. Make It Meaningful – A $5 Starbucks gift card won’t get people to hustle. But triple commissions? That changes the game. Example: We tripled the leasing bonus, and suddenly “impossible-to-lease” units were gone in hours.

4. Use Competition – People work harder when there’s a leaderboard. Example: Offer a prize for the top performer of the day, and watch how quickly performance spikes.

5. Remove Friction – The easier it is to achieve the goal, the more people try. Example: Instead of saying, “Sell 10 units to get a bonus,” try, “Every unit leased earns you an extra $100.” More frequent wins = more motivation.

Never Underestimate the Power of a Well-Placed Incentive

People aren’t lazy. They aren’t unmotivated. They just don’t have the right incentive yet.

That day in Dallas, I didn’t change the apartments. I didn’t change the residents. I just changed the incentive.

And what was “impossible” in the morning became done by the afternoon.

If you’re struggling to get people to act, stop blaming them. Look at the incentives.

Because the right incentive doesn’t just change behavior.

It changes everything.