I ran across a striking example of intrinsic motivation. Apparently the Russian scientist Grigory Perelman has rejected a million dollar prize for solving a tough mathematical problem. Continue reading
Some companies are faced with the question of whether a 100% commission plan is the best commission plan design for them. There is clear benefit of tying the costs completely to sales and reducing risk to the company. But they wonder if it will attract quality sales people to their firm. Will it allow the sales people to focus on the right deals that may take longer to come to fruition versus focussing on the short term deals? Will it mean a rush to close deals with poor terms or by discounting excessively? Continue reading
Sales commission plans normally don’t have many rules and regulations. But in certain industries there may be some that you have to watch for and make sure you are not breaking them. Continue reading
This week we were talking to a customer who was looking for commissions software to automate their commissions. The customer’s current plans were very simple: they pay a flat commission rate to their sales reps on a monthly basis on any sales, that was invoiced to the customer.
But now they want to move to a commission plan, where the commission will be paid when the customer actually pays the company for the invoice. Actually, they wanted to pay a portion of the commission when the invoice is generated and a remaining portion when the payment is received from the customer. Continue reading