Analysing Sales Compensation Schemes: The Performance Distribution Graph

Analyzing Sales Compensation Schemes: The Performance Distribution of Sales People The idea of motivation scheme is a simple one; either positively or negatively, its actions and inactions affect the performances of sales. It is a myth to think it only affects sales positively because it might as well have adverse effects on the sales force.  … Read more Analysing Sales Compensation Schemes: The Performance Distribution Graph
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The importance of stress testing the commission system

The vast majority of organizations dedicated to sell either products or services through their sales-force employ a sales compensation scheme in order to stimulate salespeople and keep them motivated to perform at their highest levels.

Financial means are required as these compensation schemes consist mostly of a monetary reward for successful actions such as closing a sale or contributing to the success of the company otherwise.

Budgeting these financial rewards and staying aware of the implied costs is a must for the organization, no matter if these precede a monetary gain. Depending on the size and overall success of the company, these can amount to significant sums of money.

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