Check Out Our Newest Books!
“You cannot afford to overpay or underpay salespeople. This book is a MUST read, MUST do!”
-Jeffrey Gitomer- Author of The Little Book of Leadership and The Little Red Book of Selling
Buy the Book!
“In the Innovative Sale, Mark defines the key principles from the world of art and design that can be used to exceed the expectations of our most demanding customers."
-- Bob Dillon- Director, SMB Agency Sales, Google
Buy the Book!
Designing a great sales compensation program that integrates with the Revenue Roadmap can be complex and time consuming, but the return can be significant. Follow the link below to a free tool – your sales compensation report card.
So now is the moment of truth: How does your sales compensation plan hold up?
This is the second in a series. Click here to read Communicating The New Sales Comp Plan: Key Steps Part I.
Whether changing the sales compensation plan or making a change further upstream in the Revenue Roadmap, a change management plan with a heavy focus on communication will increase the likelihood of acceptance, and mitigate confusion in the sales organization. Doug Holland, director of HR and compensation for Manpower Group North America, says, “If we’re making a big change that’s going to affect a lot of people, the first question our CEO will ask is, ‘Why?
Quota-setting methodologies vary based on the market and types of accounts. Approaches can range from one-size-fits-all, to a historic view to a forward-looking opportunity view.
When thinking about sales strategy and sales compensation, it’s critical to have a framework. The compensation plan should always be the caboose, not the engine. Compensation should never drive the strategy -- the strategy drives the compensation.
The sales compensation plan is one of the most significant drivers of performance in the sales organization and represents one of the single largest expenses a company will incur, commonly tens or hundreds of millions of dollars. It’s a thin line that connects corporate growth and the rep on the street. It guides and motivates the actions of the sales organization more than any other single factor, trumping leadership messages, sales strategies, sales management, and sales training.
Sales compensation dashboards are common, but they usually only tell half the story.
There are actually two sides to your dashboard that lead to growth: productivity metrics and people metrics. Looking at only one side will only give you half the picture.
All sales organizations are unique; but there are a few principles that apply no matter what you’re selling and who’s selling it. The Revenue Roadmap, below, identifies four major layers and 16 related disciplines that must connect for the organization to grow profitably.
This is the second in a two-part series of Ten Success Factors for Better Quotas. Click here for Part I.