Category: Incentive Compensation Plan

Is Every Sales Role Eligible For Compensation?

Is Every Sales Role Eligible For Compensation?

C4S Consultants
Defining a sales role is one of the first to consider when designing a sales compensation plan. The individual program one decides to apply, for example a tiered commission plan, applies to a sales role and not (most of the times) to an individual. Now that each role is defined and grouped, it’s time to … Read more Is Every Sales Role Eligible For Compensation?
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Defining The Job Role Might Be The Answer To Any Commission Plan Problem

Defining The Job Role Might Be The Answer To Any Commission Plan Problem

C4S Consultants
The sales incentive scheme is key to the success of any company that relies on selling products or services. After all, the sales incentive scheme determines how much sales people stand to earn. The most effective sales incentive scheme is one that truly motivates sales staff to reach or exceed targets (depending on company aims) … Read more Defining The Job Role Might Be The Answer To Any Commission Plan Problem
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Quota Distribution And How It Affects Sales Compensation Programs

Quota Distribution And How It Affects Sales Compensation Programs

C4S Consultants

An essential part of each sales compensation plan is the territory allocation analysed in this white paper https://comp4sales.com/product/white-paper-territory-allocation-and-the-link-to-sales-incentives-programs/, and the quota distribution.

We have published a new paper https://comp4sales.com/product/white-paper-quota-distribution-and-how-it-affects-sales-compensation-programs/, deep diving into the idea of setting targets to the sales force.

Just having the greatest terms and condition in a program does not complete it without considering the revenues a territory can bring and its potential. An additional factor to consider is the capabilities of the sales person responsible for the region.

Below the introduction of our new white paper:

“Every time the end of the financial year rolls around, budget discussions become commonplace. The sales for the current year are almost done, and sales people are in a hurry to close opportunities in their pipeline. Everyone expects to have bigger targets for the next year.

Targets (interchangeably called quotas) are the standard by which sales people are appraised. How much of the target a sales person achieves is part of any appraisal, and knowing targets gives sales people a clear idea of how much money they can reasonably expect to make.”

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

C4S Consultants

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.