Infographic; Performance Measures In Compensation Plans – How To Weight Them Effectively

It comes the time when designing a sales compensation plan one needs to decide which performance measures to use and the weight they will curry in the program.

Performance measures are those KPIs a sales person is judged and measured upon and consequently incentives are paid for. Deciding the measures to use needs some thinking with the first rule being that these measures shall reflect the goals of the sales team.

As long as there is more than one measures used in the program, one needs to think about the significance each of them will have in the system.

The below inforgraphic gives some insights to help sales management choosing wisely the weight between the measures.

Is Every Sales Role Eligible For Compensation?

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

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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Factsheet; Errors To Avoid When Designing A Sales Compensation Plan

The design process of a sales incentives and reward program includes a mixture of terms, conditions and rules that apply. I would argue that the process is very specific and its steps shall be followed and thought through carefully. If the process is followed, the chances are that these common mistakes will be avoided.

Look below for some of the most common ones that are commonly seen in the market. Those are key ones to avoid when implementing a system.