Top 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
The sales commission world is highly driven by incentives. Sales reps get paid a corresponding flat amount or percentage on gross profit if they close a deal or acquire a new client for the business.
Using incentives as a tool to get the results that you need – business-wise – is undoubtedly an intelligent move.
But how can you ensure that your incentive scheme works for both you and your sales reps? Christopher Cabrera, author of “Clean Water for a Billion People: The Transformative Power of Incentives” said: Continue reading
The 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
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
As a compensation administrator it is quite common that you will end up dealing with similar commission structure for a range of sales reps. For example, imagine a manufacturing industry where the commissions vary based on products. Here, for a number of sales reps, you may be having the same commission structure.
For this to be setup, you might start creating multiple excel sheets for each of those reps or copy over the same plan in your automated system for the matching reps. There are few drawbacks for such a setup. They are:
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
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
It’s March and we’re coming up to the end of the first quarter of 2009. Is your Sales Compensation Plan for 2009 in place? It’s surprising how many well-run, best of breed companies fail to put their sales commission plan in place in a timely fashion or fail to properly communicate how their sales people will be compensated. Continue reading