Changing your sales compensation plan to boost your sales can help your company get results.
If your sales compensation plan is improperly structured, it might not be able to boost sales the way that you would like to see. In fact, a poorly structured or outdated sales compensation plan may even work against your organization’s goals and your sales team’s best interests. These tips on changing your sales compensation plan to boost your sales can help your company identify the most effective methods to restructure a sales compensation plan for results.
Good sales people are driven by results, and one of the results that these motivated individuals look for comes in the form of a paycheck. A sales compensation plan that places an emphasis on certain types of sales or selling behaviors is likely to drive sales people to prioritize the activities that lead to the largest remuneration. This can be beneficial for your organization, but only if the behaviors you most want to see are the ones that the sales compensation plan rewards.
Any sales person who routinely posts sales numbers above average expects to receive compensation in line with his or her ability and contribution to the organization. Many businesses have begun to realize that the old standard of “one commission fits all” is out of step with the expectations set by the marketplace. Instead, tiered commission structures that reward sales people for meeting clear goals are becoming standard for many industries. There are several ways that a tiered commission in your sales compensation plan can help boost sales:
No matter how well written a sales compensation plan may be, a sales compensation plan cannot boost sales if sales people do not understand how or why compensation is structured. The final step to ensuring that your sales compensation plan performs is educating your sales force on all aspects of how their compensation is calculated and why the sales compensation plan is designed the way that it is.
Changing your organization’s sales compensation plan can be a major undertaking, but when the goal is to boost sales the potential rewards in increased sales and market share should not be underestimated. If you have tried other methods to boost sales and results have fallen short, look to your sales compensation plan next for ways to encourage meaningful change in your sales department.
Rhys is a tenacious, top performing Senior Sales Recruiter with 11+ years of focused experience in the Digital Media, Mobile, Software, Technology and B2B verticals. He has a successful track record of headhunting top performing sales candidates for some of the most exciting brands in North America. He is a Certified Recruitment Specialist (CRS) and has expert experience in prospecting new business, client retention/renewals and managing top performing sales and recruitment teams. Rhys enjoys spending quality time with his wife, son, and two daughters, BBQing on a hot summer day, tropical vacations and cottaging.