Theotintenklecks.De
  • Sales Management
  • Business
  • Marketing
  • Resume
No Result
View All Result
  • Sales Management
  • Business
  • Marketing
  • Resume
No Result
View All Result
Theotintenklecks
No Result
View All Result

Home » Sales Management » Compensation Plans: 4 Keys to Reward Results

Compensation Plans: 4 Keys to Reward Results

October 7, 2021
in Sales Management

Many issues arise when I help clients structure incentive-based pay for their non-sales and sales teams. Many people get stuck in the middle. They focus on the compensation and not their business goals. Incentives that reward professionals who contribute to the achievement of strategic objectives are the right ones. Do not blame your reps; blame the plan. Keep in mind that not all businesses are “good business.” You must reward those who are essential to your strategic growth, whether they are expanding into new markets or growing existing accounts. These are just a few of the areas where you can improve your compensation plan.

RelatedPosts

7 Things You Can Do Today to Avoid Costly Sales Hiring Mistakes

7 Things You Can Do Today to Avoid Costly Sales Hiring Mistakes

July 16, 2022
What Makes a Great Auto Sales Manager

What Makes a Great Auto Sales Manager

July 16, 2022
5 Ways to Get Your Sales Staff Fired Up, Not Fired

5 Ways to Get Your Sales Staff Fired Up, Not Fired

July 16, 2022

Create Accountability

Incentives should be tied to performance in the group, individual, and company. Minimum 50% of incentives should be connected directly to personal interpretation. We want to encourage team play. Maximizing your potential is possible only if your team meets its goals. The company also meets its goals. You can achieve your personal goals by working with your colleagues. This provides peer pressure to an underperforming member of the team. This encourages high-performing team members to assist less experienced ones. A bonus pool that can be shared among groups can promote a feeling of “what’s best for the company is good to me”. This is something many companies have lost.

Split the Pie

To capture business, there are several steps. The first step is to identify an opportunity. For technology and professional services companies, this is often done by an on-site professional, who may not be part of the business development team. Split the revenue pie to give a taste to those who are essential in opening and closing a business. The pie is usually divided into four segments: identification, buying vision, and execution. However, it is necessary to clearly define the criteria for earning credit. Your relative percentages may vary depending on the business.

See also  Six Steps To Building Your Sales Business Plan

Keep the bottom line in mind.

Let’s say your gross target margin for sales is 50%. Your sales rep will be paid 3% of gross. That’s a 6% profit. This can be dangerous for companies that pay top-line revenue. The company could lose more money from a discount than it would in commission. So, tie revenue recognition to sales. Get 100% recognition if you sell at a total price. The revenue recognition drops as they offer discounts. They may not get credit for 70% of revenue if they offer 20% discounts. Reps must fight to maintain margin. However, selling and negotiating skills are not enough. Selling is not about being the lowest bidder.

Reward Consistency

Are reps who hit their numbers quarter after quarter more valuable than those who miss in alternating periods of time? Yes. My clients are encouraged to offer a kicker if they hit their number in the last quarter. This allows reps to remain motivated and not get distracted by the comp plan. Significantly, do not limit incentive-based compensation for sales professionals. We know that incremental revenue is more profitable than first dollars if they are selling “good business”.

Make sure your incentives are simple to calculate. Your rep should be able to calculate the best incentives before leaving a meeting. These keys and other incentives will help keep your team focused.

Previous Post

C-Level Relationship Selling – Establishing Credibility – The Magic of All Sales Relationships

Next Post

To Improve the Revenue Performance of Your Business You Must Invest in Win Probability Tools

Related Posts

7 Things You Can Do Today to Avoid Costly Sales Hiring Mistakes

7 Things You Can Do Today to Avoid Costly Sales Hiring Mistakes

July 16, 2022
What Makes a Great Auto Sales Manager

What Makes a Great Auto Sales Manager

July 16, 2022
5 Ways to Get Your Sales Staff Fired Up, Not Fired

5 Ways to Get Your Sales Staff Fired Up, Not Fired

July 16, 2022
Establishing a Trade Show Headquarters Command Post

Establishing a Trade Show Headquarters Command Post

July 15, 2022
Partner Relationship Management (PRM) - Hype Or Hope

Partner Relationship Management (PRM) – Hype Or Hope?

July 15, 2022
How Does Inertia Suck the Life Out of Your Small Business

How Does Inertia Suck the Life Out of Your Small Business?

July 15, 2022
Next Post
To Improve the Revenue Performance of Your Business You Must Invest in Win Probability Tools

To Improve the Revenue Performance of Your Business You Must Invest in Win Probability Tools

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Post

7 Things You Can Do Today to Avoid Costly Sales Hiring Mistakes

7 Things You Can Do Today to Avoid Costly Sales Hiring Mistakes

July 16, 2022
What Makes a Great Auto Sales Manager

What Makes a Great Auto Sales Manager

July 16, 2022
5 Ways to Get Your Sales Staff Fired Up, Not Fired

5 Ways to Get Your Sales Staff Fired Up, Not Fired

July 16, 2022
Establishing a Trade Show Headquarters Command Post

Establishing a Trade Show Headquarters Command Post

July 15, 2022
Partner Relationship Management (PRM) - Hype Or Hope

Partner Relationship Management (PRM) – Hype Or Hope?

July 15, 2022
How Does Inertia Suck the Life Out of Your Small Business

How Does Inertia Suck the Life Out of Your Small Business?

July 15, 2022
Selling in an Economic Downturn

Selling in an Economic Downturn

July 14, 2022



Archives

  • July 2022
  • June 2022
  • May 2022
  • November 2021
  • October 2021
  • September 2021

Categories

  • Business
  • Marketing
  • Sales Management
  • Home
  • Privacy Policy
  • Contact
No Result
View All Result
  • Contact
  • Privacy Policy