This is a common question, especially for smaller companies, whose resources are limited. It’s certainly understandable for a manager to want to develop an incentive plan that only pays out of the company profits (if there are any).
It’s true in just about any sale that the sales person must be part of a team that has the right offering, the right delivery system, and the right business model to create perceivable value. So why reward some of the team and not others when a sale is made?
We are considering putting our Product Managers and Program Managers on comp plans. How should we go about setting it up?
Be clear on how much and for what measures the managers involved can “move the needle,” with a direct effect on the company’s financial results. Product Managers could be measured on product line gross margin or operating income, with a similar measure for Program Managers, for example…
What are some best practices for compensating sales-related positions such as Account Managers, Bus Dev Managers, and Tech Sales Support Specialists?
Often incentives work so well for one set of positions that the company decides if it is good for the sales force it must be good for the whole company, and before you know it administrative assistants are being paid based on number of emails answered.
Incentive plans for inside sales can be complex, depending on the situation, what should I be on the lookout for?
Before diving into a plan design for inside sales, you must first answer two questions: (1) What type of inside sales are they doing? (2) Do they qualify for the 7i exemption or are they non exempt employee?