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Commission
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.
Looking Ahead: Should We Make a Change?
Sales Compensation Focus, July 2010 – The economy appears to have taken a positive turn and many companies are starting to think about growth: hiring more sales reps, launching a new product, or breaking into a new market segment. One of the first questions that is raised when a company returns to growth mode, especially if there has been significant retrenching, is, “What should we do with our sales compensation plans?”
Incentive Plans Must be Well-Documented to Prevent Costly Confusion
The Logistics Journal, March 2010 – The joke goes that the majority of incentive plans are drawn up by the company president and sales director hastily over cocktails and written on a napkin. While most incentive compensation plans have a bit more thought put into them than this…
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…
What kind of plan is best when there is a lot of account movement between reps
A lot of account movement between reps may point to opportunities to improve sales effectiveness that have nothing to do with compensation design, like…
How to pay for vacation for a 100% commission sales role
Sales people on 100% commission plans need vacation time too. How does the idea of “paid vacation” work in a 100% commission job?
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?
What about commissions paid for non-profit fundraising?
Fundraisers are often paid a percent of the funds they raise, though the fundraising organization is often hesitant to have that be publicly known. I have seen rates as high as 50%…
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…