Seven signs your sales comp plans could be doing more for your business
1. Do your sales people appear to be “coasting”?Are they too comfortable with a level of performance that’s not acceptable to the business?
2. Are your sales people acting like teenagers?Are they unpredictable independent operators more focused on their own self-interest than what’s good for customers and the business?
3. Are your sales people selling – but not the right stuff?Are they pricing too low, or selling the old offerings they’re comfortable with and ignoring important new company offerings?
4. Are your sales people confused about their sales comp plans?Do they have trouble understanding how their payouts relate to their results? Are there too many questions or disputes about the sales commission payout each pay cycle?
5. Are your “keepers” leaving?Are they citing comp as one of the main reasons?
6. Are you having trouble hiring top talent?Do the people you want to hire express concerns about their ability to earn what they know they could earn elsewhere?
7. Are your sales comp costs going up?And are they going up faster than your profits? Is there concern over the cost of comp as it relates to value created?
We can help
Should we be using our standard annual merit pay adjustment process with our sales team’s base salaries, or should we just expect them to earn their own raise through increased sales?read more
We have two sales VPs with remarkably different team revenue quotas. One at $12MM/yr, the other at $20MM. To date we have targeted the same variable comp for each…read more
It’s important to think carefully about the message you’re sending to your other sales people, other employees, investors, and prospective future sales people. A couple of case examples…read more