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How is the economic uncertainty affecting pay mix?
Start by thinking about sales prominence. Has it changed? Do the sales people have more control over their own success, or less?
How should sales people be rewarded for sales quality?
As businesses grow, mature, and become more complex, the quality of the revenue increases in importance. This often comes up when the sales team has hit their assigned sales numbers, but the company is disappointed with the nature of those sales.
How do we design the right plan for an unpredictable year?
So many sales compensation plans depend on goals or quotas. Regardless of the type of plan you have, some kind of productivity expectation is embedded in your plans. So in a year when “expected performance” is very difficult to establish accurately, how can you manage your plans with this in mind?
How should we construct a referral incentive for “friends of the company” who help us find business?
Referrals are vital to many businesses. Setting up a referral incentive can be a great way to reward those who help create real value for the company. The keys to a value-creating referral incentive are…
Paying for long-term contracts
If the sales person is expected to “account-manage” the account and ensure satisfaction throughout delivery (perhaps while also looking for opportunities to expand the business in the account), then payment over the life of the contract would be appropriate…
Commission payments following termination
What do we do when a sales person leaves the company before the last payment is made for a contract closed by the sales person? Do we still pay after termination?
Paying more than one person for a sale – When is it appropriate, and does it cost too much?
The practice of paying more than one person for the same sale is a common one, and one of the situations in which we most often find it is in Inside/Field sales teams. It is totally appropriate and makes sense to pay two people for a sale in either of the following situations…
Reducing base to bring one sales person into alignment with the rest of the team
We have one sales rep who was brought in to sell into a different market with a base pay level that is much higher than that of the rest of the team. We have changed our emphasis and he is now selling the same products and in the same role as his 9 peers, but at a higher base. How do we correct his base pay?
Paying from first dollar for annuity business
My company is in the throes of revising the comp plan for next year and one of the most hotly debated items revolves around compensating a salesperson on all business generated from dollar one for the life of the account. Currently our firm doesn’t discriminate…
What expenses are normally covered for 100% commission sales people?
Assuming the sales people are dedicated to the company (full time, not selling complimentary products produced by a different company), then many companies offer reimbursement for business expenses based on a set policy. The eligible expenses may include…