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Measures
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!
We are considering putting our Product Managers and Program Managers on comp plans. How should we go about setting it up?
Be clear on how much and for what measures the managers involved can “move the needle,” with a direct effect on the company’s financial results. Product Managers could be measured on product line gross margin or operating income, with a similar measure for Program Managers, for example…
What is the right comp plan for the top sales job?
For the top sales job we sometimes see a sales comp type plan, and sometimes a hybrid…
How should we pay sales people selling ongoing IT outsourcing services with monthly fees?
For people selling IT outsourcing services (the primary offering), the sales people would normally earn variable pay based on bringing in deals. The question revolves around both the right measure to be used and payment timing…
What is the difference between revenue, bookings and sales credit?
Sales Credit is whatever you use to measure your sales people. While it is most often tied closely to bookings, it is also common to credit the sales people only when revenue is recognized…
What do you consider to be the key principles are important in considering role-based incentive plans?
Role-based incentive plans are used to motivate and reward those who have a direct effect on company financial results, in both sales and non-sales roles. Keep these key principles in mind when designing a role-based plan…
How can I reward project managers who bring projects in on time and within budget?
This high-end residential remodeler wants to reward project managers who bring projects in on time and within budget. Given that they have a great deal of control over on-time, on-budget project completion, it was a great idea to provide them with incentives to make that happen.
What are the advantages and disadvantages for paying for activities vs. paying for results?
In designing a sales comp plan, we strongly recommend paying for financially measurable results (as opposed to activities). Sales compensation, to be really motivating, generally involves significant cash and upside…
How do you design sales comp plans for sales roles that have to do two different things well?
How do you motivate the right focus and results, limit “elephant hunting,” and keep both product lines productive?
What are some of the “best practices” in terms of incenting sales people in a manufacturing environment?
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.