Cygnal Group
  • Sales Comp Answers
  • Services
    • Services Overview
    • Advisory
    • Express Workshop
    • Full Service
  • About
  • Resources
    • Resources Overview
    • Published Articles
    • Webinars & Speaking
    • Podcasts & Videos
  • Contact
Select Page

Why should I pay incentives to my employees when the company has not hit its overall goal?

Sales Comp Answers

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 takes a village” to close our deals – why does only the sales person get paid?

Sales Comp Answers

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?

Sales Comp Answers

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?

Sales Comp Answers

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.

What is considered “best practice” with regard to payout eligibility and employment status re: incentives and contests/SPIFFs?

Sales Comp Answers

My answer is different for contests and SPIFFs than for core incentive components. For core components, give some thought to what you’re trying to accomplish with your eligibility requirements…

Search the Cygnal Group site

Click on a topic below to see related posts

Account management Annuity sales Base pay Change management Charge backs Commission Commission Draw Economic downturn Financial implications Incentive eligibility Inside Sales Long-term contracts Measures Modeling Motivation New business sales Override Payment Caps Payment timing Pay mix Payout frequency Pay Structure Plan design principles Plan document Plan mechanics Plan provisions Quota bonus Quotas Recurring Revenue SaaS Sales credit trigger Sales leader Services sales SPIFFs Team Selling Termination Thresholds

Not finding your answer? Ask your own question below!

Subscribe

Enter your email address below to receive an email whenever a new sales comp tip is posted
Loading
  • About
  • Privacy
  • Terms of Service
  • Contact
Copyright © 2023 The Cygnal Group, Inc. All rights reserved.