Sales Compensation Philosophy
Sales compensation is one of the most important aspects in managing
a sales group. We firmly believe, however, that an effective plan need
not be complicated, controversial, or difficult to administer.
A sales compensation plan must support and complement corporate sales
and business goals. Beyond that, these principles guide our client
conversations:
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Salespeople
should be involved. It is their plan, and their input is essential to
success.
Of course, management makes the final decisions, yet sales participation
inevitably yields better results.
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A good plan is one in which management is eager to write big incentive
checks. Hefty checks should be synonymous with big success and big profits
for the company.
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Plans should be formal, in writing, evaluated yearly, and acknowledged
by every participating salesperson.
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Flexibility is critical. The plan should be able to react to rapidly
changing markets, products and competitive offerings.
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Compensation plans send a strong message about your sales culture and
values. They need to be well thought out.
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There is no perfect plan. Nevertheless,
when a company conducts a thorough review of compensation, nothing but
positive results occur.
Experience has shown us that the majority of our clients had compensation
programs that consisted of a "letter of hire", with brief reference
to salary and incentives. If the philosophy we advocate is in line with your
own, or just seems to make sense, please call us at 978-470-3454 for further
information.
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