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	<title>The Cygnal Group, Inc. &#187; Solution sales</title>
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	<description>Making your numbers . . . better.</description>
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		<title>How do you go about incentivizing Solution Sales?</title>
		<link>http://cygnalgroup.com/how-do-you-go-about-incentivizing-solution-sales/</link>
		<comments>http://cygnalgroup.com/how-do-you-go-about-incentivizing-solution-sales/#comments</comments>
		<pubDate>Wed, 18 Feb 2009 18:15:00 +0000</pubDate>
		<dc:creator>Donya Rose</dc:creator>
				<category><![CDATA[Sales Comp Answers]]></category>
		<category><![CDATA[Solution sales]]></category>

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		<description><![CDATA[We have worked with several clients where solution selling is (or is becoming) a priority. By “Solution Selling” you probably mean a sale that...]]></description>
			<content:encoded><![CDATA[<p>We have worked with several clients where solution selling is (or is becoming) a priority. By “Solution Selling” you probably mean a sale that:</p>
<ul>
<li>Incorporates several product or service offerings tailored to meet the specific needs of the prospect</li>
<li>Involves more than the individual sales lead including multiple specialists involved to match company capabilities to the needs of the prospect</li>
<li>May be one of relatively few large sales closing in a quarter or year (the sales person is managing a small number of large opportunities, not a large number of small opportunities)</li>
<li>Is a strategic buy for the prospect, with the opportunity to become more of a partner than a vendor over the long run</li>
<li>Requires an understanding of both your company’s offerings and the business problems they solve, including the basis for an ROI type justification for the prospect’s investment</li>
<li>Can be months or quarters in time to close (not weeks or months).</li>
</ul>
<p>There are probably other characteristics that matter – but these are the hallmarks of the solution sale. The person executing this sale well is usually experienced, well-educated and highly compensated for an individual contributor sales person. They typically have a substantial base salary, with meaningful upside available when those large deals close. They also typically have significant influence over the profitability of the deal and/or the longer term relationship through a combination of pricing, product/deal configuration, and real value creation by matching capabilities with prospects’ needs. For this reason, they often are measured on deal profitability and/or account profitability. Typical plan design characteristics include:</p>
<ol>
<li>Quarterly payouts (vs. monthly) in recognition of the longer sales cycles</li>
<li>Commission type plans (% of what is sold), as opposed to quota bonuses – because the deals are large and infrequent, so goal setting accuracy would be difficult</li>
<li>Capped at a deal level (not in aggregate) at a very high payout, perhaps 1 to 2 times the base</li>
<li>Profit/contribution measures (vs. bookings or revenue), perhaps in addition to bookings or revenue.</li>
</ol>
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