Plan communication matters in sales comp. Get maximum value from your plans by communicating clearly and positively with your sales people, both at the start of your plan year and as the year progresses. We offer best practice guidance, along with helpful templates to get you started.
It’s important to think carefully about the message you’re sending to your other sales people, other employees, investors, and prospective future sales people. A couple of case examples…
For incentive compensation payments during a leave of absence, think about when the work is done vs. when the payment is made.
Our small sales team is paid 100% commission on gross margin. Sometimes, we claw back commissions that were paid after the customer is past due and in collections, is this legal?
How do most companies handle sales compensation when there is a write-off for bad debt. Do they charge them back on the cost the company is out, or the gross profit they would have made if the customer paid?