Most Recent Sales Comp Answers

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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Adjusting quotas mid-year. . . Should we? And if so, how?

The problem Sometimes our sales people lose business due to factors outside their control (e.g., customer bankruptcy, mergers, incompatibility of our offering with their requirements). Do we reduce quotas when this happens?  Why do you have a sales incentive plan? The...

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What your CEO needs to know about your sales comp plans

CEOs don't need to understand the details of the sales comp plans, but they do need to make sure that a few things are working correctly. Here's a check-list for what you should be able to demonstrate to your CEO in your next plan review/approval meeting: The plans...

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