Incentives programs are used today in almost any sales environment. Sales management mistakenly believe that the scheme’s design is an easy job that can be done within a one hour.
The design includes various steps, all of them being important to consider. However some like the one analysed in this white paper is one of the core to work on.
This white paper is analysing the notion of total target cash compensation, how one can decide on this and why this is so important.
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 is followed. Deciding the total target cash compensation for a sales role is one of the most vital and first steps in the process.
The white paper covers the following ideas around this notion:
TOTAL TARGET CASH COMPENSATION – GETTING THE MIX RIGHT
TTCC IS THE FOUNDATION OF A SALES INCENTIVE SCHEME
WHY IS TTCC SO IMPORTANT?
FOUR APPROACHES TO SETTING THE TTCC LEVEL
IMPORTANT FACTORS TO CONSIDER WHEN DECIDING TTCC
SHOULD YOU PAY AT, BELOW OR ABOVE THE MARKET LEVEL?
THE NEXT STEP – DECIDING ON THE PAY MIX
MAIN FACTORS TO CONSIDER WHEN DECIDING THE PAY MIX
ASSESS THE MIX FREQUENTLY
LEVERAGE – THE REWARD FOR EXCEEDING SALES TARGETS
WHY INCLUDE LEVERAGE IN A SALES COMPENSATION SCHEME?
DOES YOUR COMPANY NEED A LEVERAGE SCHEME?
DOWNSIDES OF PAYING LEVERAGE – AND WHAT TO DO ABOUT THEM