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New business sales
How do we compensate appropriately when the sales person is responsible for both New and Recurring business?
Three approaches that work are: (1) split the plan into New and Existing components, (2) single component goal-based plan with a goal that requires good retention/penetration and New, (3) pay on net new.
When is the use of a threshold a good idea vs. paying on every sale?
For sales people tasked with growing an established business, a threshold can be the key to focusing them on growth.
If a Territory Manager is a “Hunting Farmer,” How Should Their Comp Work?
While many established sales organizations use the hunter-farmer model as their sales force organization model, there are inevitably geographic territories or customer segments that do not justify both “hunters” and “farmers’…
What types of draws are typically offered to sales representatives when joining a company with a long sales cycle (9-12 months)? How many months and at what % of target?
To address this, here’s an overview of a few ways to smooth the entree for a new rep, listed from the least to the most effective in a long sales cycle role…
Hiring your first sales person
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…
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?”
How should sales people be rewarded for sales quality?
As businesses grow, mature, and become more complex, the quality of the revenue increases in importance. This often comes up when the sales team has hit their assigned sales numbers, but the company is disappointed with the nature of those sales.
New Business vs. Account Management roles in Professional Services
In professional services, do you compensate differently in sales plans for “new” business vs. maintaining an account to incent your best “prospectors” to develop new business?
What percentage of annual gross revenue should come from new business?
I believe your question is about sales roles with a new business focus when the acquired business generally turns into a long-term annuity type relationship. Examples from my experience include…
What is the best way to compensate for multi-year maintenance contracts, including Managed Services?
The first question about the multi-year maintenance contracts is whether the role for which you’re compensating is a new business role or an account management role. If its primary focus is gaining new business…