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Sales credit trigger
At what point should sales people be paid?
Finish paying when: (1) the sales person has done what you need them to do, and you are ready for them to focus on closing another one, and (2) you have a solid basis for knowing the value of what was sold – but there’s a bit more to it…
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?”
We need to move from paying at booking to paying when cash is collected – how?
The business may have to deal with the problem that the lag created by the new sales crediting policy will mean a permanent loss of income for the sales people…
What kind of plan is best when there is a lot of account movement between reps
A lot of account movement between reps may point to opportunities to improve sales effectiveness that have nothing to do with compensation design, like…
Paying for long-term contracts
If the sales person is expected to “account-manage” the account and ensure satisfaction throughout delivery (perhaps while also looking for opportunities to expand the business in the account), then payment over the life of the contract would be appropriate…
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’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…
How should sales be credited for SaaS sales?
The principle to apply here is that the sales person should be paid at the point at which (1) you can reliably state the value to the company of the sale, and (2) you want the sales person to disengage and move on to the next sales opportunity. For most SaaS models…