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There’s a direct chain that goes from the business strategy all the way to the measures and objectives in the sales comp plans. If you can’t demonstrate these linkages, your sales compensation plans may not be doing all they can to support your business’s success.
It may be possible to combine the two types of sales using margin value as the measure, or it may be necessary to create two separate incentive components…
Often in manufacturing companies, sales people influence both the volume of sales and their relative profitability, rewarding simultaneously for both puts the incentives in line with what’s best for the company.
If a small business had a business plan that included an operating loss of $200,000 for the year, putting together a payout table to reward for this “success” would not work if the mechanics were communicated as a percent of the goal…
After the incentive plans for sales representatives are completed and modeled, the next step in a plan design project is to develop plans for the front-line Sales Managers. Companies generally take one of three approaches based on their pay philosophy.
For early stage businesses, your first sales hire is hard to do well. You don’t have a sales leader to help you confirm you have the right skills and temperament for the job. You’re not sure what to expect in terms of productivity…
We have a sales role with the job of helping existing customers get better value from our service – but “success” will not result in a contract or a specific sales event. How do we comp for that?
Workspan, August 27, 2010 — It’s fall again, the economy appears to have shifted toward the positive in many sectors, and companies are thinking about redesigning their sales compensation plans for 2011. In order to ensure the redesign process and resulting plans will provide a good return, businesses should address six key areas.
Global organizations need structure. Local businesses need to focus their sales team on local priorities. How can these apparently conflicting needs be balanced?
Logistics Journal, April and May 2010 – Good news and bad news: incentive plans work! So how do you design your incentive plan so you don’t end up with some unexpected consequences?