Factsheet; Setting The Right Level of The Target Cash Compensation

When you hire a sales person you need to do your maths before; that means deciding how much you are going to offer to this person. And when we talk about offering, we mainly refer to the level of the OTE (on target earnings) the sales person will pocket in a year. This is the sum of the fixed salary and the variable part (as for example commissions) the sales person will get.

It is called on target earnings because the variable part will be granted in full only if the goals are met, whatever these are! The total target cash compensation, in many publications seen as TTCC is always in cash.

The target cash compensation is different for each sales role (its range differs per role) and sometimes per sales person. The question though is how one decides how much to give to a sales person in TTCC? And which are the factors to decide that level?

There are various scenarios and methodologies to use depicted in the below factsheet. Reach out to us to discuss a methodology that fits your company.

Factsheet; Errors To Avoid When Designing A Sales Compensation Plan

The design process of a sales incentives and reward program includes a mixture of terms, conditions and rules that apply. I would argue that the process is very specific and its steps shall be followed and thought through carefully. If the process is followed, the chances are that these common mistakes will be avoided.

Look below for some of the most common ones that are commonly seen in the market. Those are key ones to avoid when implementing a system.

Factsheet; High Turnover Of Sales People And The Sales Compensation Plan

Are your sales people leaving the job after a change in the motivation plan? Do they show signs of being demotivated?

The Sales Compensation Plan in place is evidently one of the main reasons sales people change jobs. It is also quite common that many organisations do not face the fact.

It is not just because the commission rates have been reduced that annoyed sales people. There are many other factors that lead to dissatisfaction. See below our factsheet with some key reasons associated with the compensation program that cause high turnover.

Start by assessing your program; watch and study data associated to performance and payout. Then you will find the individual aspects of the system to fix.

Factsheet; Why Motivation Schemes Work

Are Sales Motivation Schemes like commission plans work, or is it a complete waste of money?

Not only current evidence from companies that are using schemes successfully for so long but also research in various textbooks and research shows that they work. Their effectiveness however depends on the way it is designed.

Below, four essential and core reasons that prove that motivation plans work.