Ask a Question
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?
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?”
While it is generally better to pay as close to the selling event as possible, it is not always the case that more frequent payouts are better. All one needs to do is consider the most extreme circumstance (daily incentive payments ?!) to see how you can have too much of a good thing.
Generally speaking it’s a good idea to align the payout frequency with the length of the sales cycle. If sales cycles are under a month, monthly payouts should be considered. If sales cycles are 1 to 3 months…
If you referring to a bonus plan that is paid at year-end and is available broadly across the company to people in leadership and technical roles, then you should know that many technology companies do pay more frequently than once/year.
The bonus program that is the best one for your business depends on what your reasons are for offering the bonus. If you are looking for a way to provide additional income for your sales managers…
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.