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.”