Category Archives: Sales Commissions

5 Common Sales Commission Structures

Easy-CommissionChoosing the best sales commission structure is important to motivate your sales people and achieve your business profit. However, there are many factors that can impact sales commission. Some of these factors include: what you are selling, your employees, the industry, your company size, sales cycle length, and more.

The most common and simple sales compensation plan is made by providing commission as a percentage of a single sale’s revenue. If a product sells for $2,000 with a sales commission rate of 5%, a sales professional would collect $100 for each product they sell.

Common sales commission structures include profit, gross margin, tiered commission structures, straight commissions, draw against commissions. Continue reading

5 Reasons Why You Should Automate Your Sales Commissions

Easy-CommissionAre you still using Excel for calculating sales commission? Then, you should be aware of the following cons of using Excel for calculating sale.

  • Excel is manually cumbersome
  • It is not scalable
  • Involves usage of complex formulas
  • Takes a lot of time and effort

There is a solution for all these problems:

Automating Your Sales Commissions

Here are the top 5 reasons why you should switch from Excel to a software which can automate your sales team’s commissions: Continue reading

Top 3 Features of a Good Sales Compensation Software

Sales Compensation SoftwareTop 3 Features of a Good Sales Compensation Software

I was looking through the World Wide Web when I happened to click on one of the bookmarks on my browser. It inadvertently led me to a website that had a list of math problems that you can solve. The math problems weren’t the likes of simple addition or multiplication problems though.

The list of math problems were example situations that you had to solve to get the amount of sales commission that your sales rep would get. Continue reading

FREE Sales Commission Calculator Just for You!

Easy-CommissionFREE Sales Commission Calculator Just for You!

Too busy, too frazzled, or too preoccupied – We’ve all been there at some point in our lives.

With the holidays fast approaching, sales reps and sales managers alike are usually running here and there trying to get a lot of things done all at the same time. Everyone’s buying gifts for everyone. The people in sales are usually at their busiest before, during, and even immediately after the holidays. Continue reading

Sales Commission Wish List

Sales CommissionSales Commission Wish List:
A Sales Rep’s Holiday Wishes for Sales Commission Management and Reporting

‘Twas the night before Christmas, when throughout the company, not a sales rep was stirring, not even a boss. The commission statements were hung by the water cooler with care, in hopes that St. Nicholas would spot them there. Continue reading

Moving Beyond Spreadsheets

Lotus 123, SpreadsheetsIn the April/May 2015 issue of the Journal of Accountancy [1], columnist Jeff Drew asked a group of panelists to discuss the future of the spreadsheet. Drew noted “last fall (Sept 2014) that IBM officially ended support for Lotus 1-2-3, which was one of the world’s dominant spreadsheet program.”  He further noted the “demise was barely noticed in accounting circles, where the spreadsheet application was once hailed as revolutionary”.

Lotus 1-2-3 hit its peak in the mid to late 80’s and 90’s before Excel was introduced with its popular Microsoft Windows 95 suite. Continue reading

My Top 10 Favorite Quotes from Total Rewards 2015

WAWLive (1)May 18-20, 2105. QCommission was one of the exhibitors in the recently held Total Rewards Conference in Minneapolis, Minnesota.

The conference was for the Fortune 500 HR and Benefits Professionals and was mainly about the changing climate of reward and #salescomp recognition. Continue reading

Commissions: Pros and Cons

CommissionsThe debate on whether paying your sales agents commissions is good for your company or not has seen a lot of heated and passionate discussions over time. There are parties who are strictly opposed to the idea of paying commissions, and there are parties who are strictly pro-commissions.

But should there really be a hard line between the two? Continue reading

Trick or Treat? Are Your Sales Comp Plans Working?

Ghosts

It’s that time of year again, we think about it all year long. It all leads up to the never ending question “What to wear?” Something frightening? Perhaps a pop culture reference? Or maybe something attractive? Possibly a funny one? The name of the game is the best Halloween costume. What you wear says a lot about you and can make or break your ghoulish Hallow’s eve. Continue reading

Leading vs. Lagging KPIs – What Successful Companies Measure

LeadingKPIOne of the definitions we have provided in this series was the definition of a Key Performance Indicator (KPI). Per author David Parmenter in his book “Key Performance Indicators”, A characteristic of a KPI is “non-financial in nature that can be measured daily yet can have a significant impact on operations”. For my financial colleagues, that can be a head-scratcher as we are always thinking of P&L and Balance Sheet items for metrics which tend to be lagging KPs. Financial statements are merely the scorecard for the results of the KPIs. So what measures of performance can we use as leading indicators of potential issues? This blog will provide some examples. Continue reading