HR

9 Key Steps to Sales Compensation Design

9 Key Steps to Sales Compensation Design

Are your sales low? Margins thin? Do you experience high turn over in your sales department? Worse yet, do you tend to attract and keep low-performers? Have you considered you sales compensation plan as a cause for some of your problems? If you haven’t, you should. One point before we get started: Sales compensation plans are not a substitute for good sales management. You need to have both. Here are nine keys to properly designing a sales compensation plan: Assess your needs. How effective is your existing plan? Is...

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Compensation Design: Define the sales rep’s role

So what is new in the world of sales compensation? In a way the more things change, the more they stay the same. Fundamentals don’t change and as such they are always a good place to start. There are at least nine components to successful sales compensation design. There is a post (9 Key Steps to Sales Compensation Design) that lists these steps for your reference. In this post we will examine Key Step #3 “Define the sales reps’ role” in greater detail. As you approach your new sales plan design,...

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Sales Force Dynamics: Instituting an Ideal Compensation Plan

Sales Force Dynamics: Instituting an Ideal Compensation Plan

Sales compensation is a crucial factor in motivation. It is the sales executive’s best strategic tool to drive sales performance and motivate specific selling behaviors. When designing sales compensation plans, one of the most important steps is to identify the appropriate measures on which your sales representatives will be paid. A combination of salary, commission and bonus is usually most effective. The question then becomes how to successfully blend all three that will entice achievers, as well as reward them according to performance. Nevertheless, the plan needs to be...

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Building a High Performance Sales Team (3 of 3)

Building a High Performance Sales Team (3 of 3)

In “Building a High Performance Sales Team” we have covered the following steps: Creating a Crystal Clear Vision, Evaluating your Existing Team and Bringing New Players Onboard. Here then are the final two steps: CREATING THE RIGHT ENVIRONMENT Are the company culture and environment hospitable to a high-performance sales team? The right environment requires a properly designed compensation plan that is attractive to top performers, rewards the right activities and results, is challenging (but still achievable) and, above all, fair. To attract and keep top-performers, the compensation structure has...

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Building a High Performance Sales Team (2 of 3)

Building a High Performance Sales Team (2 of 3)

The first step in bulding a high performance sales team was to develop and communicate a crystal clear vision and purpose. Here are the next two steps: Evaluating your existing team and bringing new players onboard… EVALUATING EXISTING TEAM Once the job responsibilities, personal traits and professional competencies are defined and agreed upon by the management team, this next step becomes much easier. It’s time to evaluate the existing team… How closely do they fit the profile that is needed to succeed in the marketplace? This is done in...

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Building a High Performance Sales Team (1 of 3)

Building a High Performance Sales Team (1 of 3)

What a dream come true for any organization, a high-performance sales team. A team feared by competitors and respected by clients for its knowledge, business savvy, value and results. In a perfect world, such a team would simply be inherited. Every member would be a top performer, satisfied with the organization and eager to improve on their existing success. In reality, this ideal is considerably out of reach. Given that a readymade faction of determined sellers is not currently assembled for you, how will you go about building one?...

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