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Other ideas for sales measures other than hitting sales quota?
I’m looking for ideas in revamping our sales comp to include metrics and pay for items other than just meeting a traditional sales quota. Perhaps a bonus for a close rate of XYZ, for example. Any ideas are welcome!
Tips on putting together an incentive plan for inside sales
Any tips for putting together an incentive plan for “inside sales” employees? We are trying to get our employees into a “value-added selling” frame of mind (instead of price-point) and want to provide an incentive.
Where are the sales comp plan samples?
Many people would like to find a book of sales plan templates — but there’s not one I know of. That’s probably because it’s sort of like asking for someone to provide a copy of their house plans for your consideration…
Do sales incentives actually motivate people for the long run?
Regarding whether or not incentives actually help at all, the best piece I’ve read on the subject is Rewards and Intrinsic Motivation by Cameron and Pierce. The key points relevant to sales compensation design from the book are…
How should I go about switching from an annual payout to a quarterly payout?
While it is generally better to pay as close to the selling event as possible, it is not always the case that more frequent payouts are better. All one needs to do is consider the most extreme circumstance (daily incentive payments ?!) to see how you can have too much of a good thing.
How often should sales people be paid?
Generally speaking it’s a good idea to align the payout frequency with the length of the sales cycle. If sales cycles are under a month, monthly payouts should be considered. If sales cycles are 1 to 3 months…
What are the advantages of using a non-commission sales comp plan in mature companies?
Mature companies with successful business strategies and an efficient go-to-market approach should, over time, see sales person pay go up with the labor market while sales productivity goes up faster. This means that comp % sales goes down…
How do you know what the right commission rate is for your industry and area of the country?
Answering this question is harder than it looks. The answer depends on the nature of the selling role, the level of maturity of the business, and the cost structure of the company.
Are there any design principles you recommend I use to differentiate between existing products to new customers and new business/new products?
Generally a sales comp plan may pay differently for new products or new accounts in order to recognize a few typical characteristics of these sales:
What type of itemization/documentation is an employer required to provide to sales people paid variable compensation?
There is no requirement to provide documentation in the US in most industries. You are free to provide additional compensation whenever you’d like, based on whatever criteria you establish (or change). However, to maximize the motivational value of your plans…