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Most Recent Sales Comp Answers

Sales Pay Structure – How much fixed, how much variable?

In putting together a pay structure for a sales team, the first step is to establish the right total cash compensation for the role. The next step is to decide how much goes into the base pay (/salary), and how much into the variable incentive pay at target. The main determinants of pay mix are market practice and sales role prominence. 

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Sales VP Compensation – sales plan or executive plan?

It’s usually important to have the sales executive measured similarly to their sales team. So if the sales team’s primary measure is Revenue, then the sales executive should also have significant variable pay based on Revenue. But it’s also reasonable to hold the sales executive accountable for measures directly influenced by…

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Podcast: Keys to a successful sales comp plan

Donya Rose was interviewed by David Johnston on behalf of the Canadian Professional Sales Association. In this 15 minute podcast, Donya provides helpful tips and best practices on a number of topics across sales compensation plan design.

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Accounts Receivable – good sales comp measure or not?

A/R metrics in sales compensation plans are relatively rare. There is often an impulse to include them from Finance, but in the end the sales leadership usually manages to impress upon Finance the importance of freeing sales people to sell and letting a lower cost...

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What is the ROI on a sales compensation plans design change effort?

A sales compensation design effort yields results in three areas: revenue increase, margin improvement, cost of compensation in relation to sales productivity. Be sure you know why you are changing your plans and what you hope to accomplish, and your plan design will be much more likely to yield improved results.

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