Tag Archives: Sales Commissions

Evaluating Impact of Caps on Sales Commissions

Top 5 Reasons Cited for Capping Sales Commissions 

By Heather Peterson

Dangling Carrot

At its root, commissions serve as a motivational tool to drive sales performance.   These “carrots” are the foundation for an incentive system to evaluate a sales representative’s productivity.  Sales reps that reach or exceed the goals are rewarded while sales reps that do not meet goals provide a business with insight into performance, projection, people or product issues. Continue reading

Microsoft’s Shift to Cloud Solutions Negatively Impacts Partner Commission Structure

At its prime, Microsoft sold its software solutions through an extensive network of reseller partners.  Not only did the partners earn from software sales but also received commissions for consulting and implementation services.  The shift to the Microsoft cloud solutions has impacted the Microsoft eco-system. Continue reading

Retailer J.C. Penney Goes Back to Commission Plans for Future Growth

J.C Penney announced this week the closing of 33 stores nationwide in order to turnaround the company.    Part of the new strategy is to re-implement commission plans per company spokeswoman Ann Marie Bishop “for its salespeople in the window coverings, furniture and fine jewelry departments”.   She further commented in an email to the LA Times “Offering a competitive salary base that includes a commission incentive not only helps in retaining some of our best sales associates, it motivates them to build and maintain stronger customer relationships.” J.C. Penny is reversing a sales strategy that eliminated commission plans and discount programs under former CEO Ron Johnson who was previously with Apple. Continue reading

Food for Thought at Tax Time

by Claudia Bruemmer, Guest Blogger

Tax time is coming up, and we can’t overemphasize the importance of companies big and small being able to accurately report income and expenses to the IRS. Sales Commissions are one area where IRS reporting may be overlooked and invite audits of your sales staff as well as your firm.

Just out of curiosity, how many of you reading this have the means to track and pay sales commissions? Perhaps many of you do, and that’s great ammunition to have on hand if it ever comes to a tax audit. Heaven forbid you should ever be audited – but better safe than sorry. Continue reading

Sales Commission Plans in a Down Economy

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