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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?”
The practice of paying more than one person for the same sale is a common one, and one of the situations in which we most often find it is in Inside/Field sales teams. It is totally appropriate and makes sense to pay two people for a sale in either of the following situations…
My company is considering instituting a plan where all team members would share in a commission on sales made. I’m looking for ideas – how is it structured, are all sales included in the group commission, etc.
What is considered “best practice” in how we would recognize and reward sales managers for covering open districts?
For sales managers who are expected to keep their territories fully covered, maintaining a pipeline of candidates and connections, it makes sense to expect them to continue to produce sales out of an open territory…
How to handle compensating Territory Sales Managers who have additional responsibility to coach and train new hires or under-performers.
First of all, you are wise to avoid adding permanently to the base salary in recognition of a transient responsibility. My suggestion is to provide a separate incentive compensation opportunity…
When is it appropriate to measure results generated by a team rather than just results generated by an individual?
Often we are asked about how to provide incentive compensation for team results. The key principle here has to do with how the sales are made. Do the team members depend on each other to be successful?