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If a sales person is retiring do we “buy out” their future commission stream?
Who really “owns” the commission stream? Did the sales person create it single-handedly, or was it the result of a great company offering, solid strategy, and a repeatable selling model?
Why should I pay incentives to my employees when the company has not hit its overall goal?
This is a common question, especially for smaller companies, whose resources are limited. It’s certainly understandable for a manager to want to develop an incentive plan that only pays out of the company profits (if there are any).
Quarterly or half-yearly quotas – when is it a good idea?
Done correctly, smaller measurement periods can contribute to improved quota accuracy, consistent deal flow throughout the year, a more motivated and productive sales force, and a better value for the sales compensation dollar.
My employer thinks I made TOO much last year therefore he has a new pay package for me which caps my sales commission!
No caps. We rarely recommend a sales comp plan be capped – no need to take your top performers’ motivation out. But we do recommend deceleration at high levels of attainment, per-deal caps, caps on the % of margin on a deal that may be paid to the rep, etc. – these keep pay rational…
What is a fair commission to pay for setting appointments?
It’s probably best to start with the total comp needed to attract the right kind of people into the role, and a reasonable number of appointments they should be able to set…
Why would I pay incentives to sales reps when the overall company is not hitting its goals?
Making Your Numbers…Better Newsletter, September 2010 – Should you pay incentives to sales people if your company is not hitting its overall goals? Yes, if that incentive pay makes up more than just a token year-end bonus.
Do sales representatives continue to receive commission payments while on maternity leave?
When we think about the treatment commission payments during maternity leave or other short-term leave, we think about what is fair based on the details of the incentive plan in question…
How much of our sales team should we include in our President’s Club?
There is a lot of variability in goals and practice in structuring a President’s Club award program. 30% of all sales people participating would be on the high side…
We need to move from paying at booking to paying when cash is collected – how?
The business may have to deal with the problem that the lag created by the new sales crediting policy will mean a permanent loss of income for the sales people…
How do we keep high producers motivated when their goals keep going up each quarter/year?
The problem occurs when stellar performance this year results in a very high quota next year (calculated as a percent increase over this year’s results), and so a significant risk that the new higher quota will not be attained next year.