Sales compensation schemes are fundamental in sales and a great tool in the hands of the sales management. Sales management mistakenly believes that the scheme’s design is an easy job that can be done within a one hour.
The design of a scheme includes various steps, all of them being important to consider. The compensation formula itself and the set of goals a sales person has are not the only to consider. They are not independent from the territories a sales person covers.
This white paper is analysing the notion of how the territory allocation is linked to the program, how one can make sure that this topic is not overlooked.
When we design a new sales compensation scheme at C4S, we dive in in every technical aspect of the program making sure the right people get the right sales credit.
Designing a sales motivation scheme is a process that requires the usage of various terms and conditions. It also requires a certain process that should be followed. Considering the territory allocation is vital to the program.
The white paper covers the following ideas around this notion:
THE DEFINITION OF A SALES TERRITORY
THE ROLE OF SALES TERRITORIES IN A SALES COMPENSATION PLAN
WHEN TO ALLOCATE TERRITORIES
THE CHALLENGE OF ALLOCATING TERRITORIES FAIRLY
FACTORS TO TAKE INTO ACCOUNT BEFORE ALLOCATING TERRITORIES
HOW DO YOU CREATE A LEVEL PLAYING FIELD FOR YOUR SALES TEAM?
TERRITORY AND QUOTA ALLOCATION
SOLVING THE PROBLEM OF UNFAIR TERRITORIES