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Plan mechanics
How do we design the right plan for an unpredictable year?
So many sales compensation plans depend on goals or quotas. Regardless of the type of plan you have, some kind of productivity expectation is embedded in your plans. So in a year when “expected performance” is very difficult to establish accurately, how can you manage your plans with this in mind?
Paying from first dollar for annuity business
My company is in the throes of revising the comp plan for next year and one of the most hotly debated items revolves around compensating a salesperson on all business generated from dollar one for the life of the account. Currently our firm doesn’t discriminate…
Are sales organizations utilizing more attainment thresholds in their sales compensation plan designs as the result of the current recession?
The logic for raising thresholds in this economy would be to protect profit. The logic for lowering them is that we are not nearly as confident in our quota setting accuracy in this economy…
What’s a good formula for a commission plan based on obtaining orders?
For a commission based incentive plan, based on obtaining orders/circulations of products/consumer goods in bulk, here are some suggestions about when a particular commission plan type might be most beneficial…
When should payout rates decrease, and why?
We generally recommend that rates decrease at a very high level of performance, well above goal. And the decrease should continue to hold the rate above the “base rate” (immediately below goal rate).
How do we design a 100% commission plan, and how does that interact with a draw?
There are many different ways a 100% variable commission plan can be structured, depending on the needs of the business and the nature of the product sold. The most simple approach for pure new business developers is to use a flat commission rate…
Sales Manager bonus plans
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…