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Measures
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.
Sales Director Plan Designs – not the same as those for individual sellers
Sales Director comp plans should bear a strong relationship to the plans of the individual sales people, but should also have a few key differences…
Hiring your first sales person
For most small companies, 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…
Account Managers vs. Business Developers: Key comp plan differences
Have you decided it’s time to specialize in your sales team? One of the first ways companies do this is by separating the Account Management role from the Business Development role. If you’re thinking of this approach, and if you have a reasonably short sales cycle so that your business developers close at least several new customers per month on average, these tips are for you.