Sales Compensation and Incentive Plans
A sales compensation plan is a key tool in realising your company’s business objectives.
The sales compensation plan should be designed to encourage the sales behaviours that enable the company’s strategy and business objectives to be met. At the same time, it should encourage high sales performance, staff recruitment and retention with a good return on investment.
Far too often insufficient thought is put into sales compensations plans, and as a result the company’s investment in the sales team isn’t maximised. Either business objectives aren’t met, or they are met, but at excessive cost in sales commissions.
Do you face any of the following problems?
- Missing the company’s objectives?
- Paying out commission but not getting the return on investment you want?
- A sales team that isn’t delivering the right mix of results?
- A sales team that isn’t motivated or hasn’t got the fire to succeed?
- Good salespeople leaving to work for competitors?
If you recognise any of the above symptoms, you need to be taking action on your sales incentive plan.
An effective sales compensation plan will provide a huge motivation for your sales team to go out and drive the results you need.
The biggest factors determining the success of a sales compensation plan are:
- How closely are the sales compensation plan’s objectives tied to your business objectives – short and medium term?
- Will the commission or bonus you pay out under the sales compensation plan generate a good return on investment for the business?
- Are the sales compensation plan’s objectives realistic and fair in the eyes of the people it is supposed to motivate?
- Will the sales compensation plan act to help you retain your star performers and help you recruit new ones?
- Is the plan designed to over-reward over performance and under-reward under performance?
- Is the sales compensation plan tied into your wider sales management processes of performance management, coaching and development and non-financial motivators?
Learn how to create an effective sales compensation plan
This training programme equips you with the tools and skills to be able to create an effective sales compensation plan. The training programme covers:
- Defining the objectives for a sales compensation plan
- Understanding how motivation works and how you can make it work for you
- Principles of sales compensation plans. Should you go commission only? Or part salary, part commission? Or totally salary? What about guarantees? What about sales managers as opposed to sales people?
- Mechanisms of sales compensation plans. How many measures should there be? What is the difference between commission and bonus? How to use multipliers? When should you pay out?
- How to implement a sales compensation plan. How to create an advisory team? How to decide what needs to change with an existing scheme? How to calculate and set targets? How to document the scheme?
- How to manage the sales compensation plan. How do you ensure fair governance? How do you deal with the need for in-flight changes?
This training programme will benefit:
- Sales Management: If you lead, manage, or direct a field sales team and are responsible for ensuring they meet revenue or profit objectives, this course will vastly expand the tools, methods and practices you use to achieve these aims. This could include: Head of Sales and Marketing, Sales and Marketing Directors, Commercial Directors, Business Development Executives, Sales team leaders and managers and all those who carry responsibility for achieving or exceeding sales targets and would like their teams closing ratios to improve.
- Sales Operations: People involved with ensuring sales teams meet their objectives and who provide the support, processes and controls to ensure that happens.
- Finance: This course will also benefit those that work in the finance function and want to understand how the sales incentive process works and how it can be made more effective. This could include: Chief Financial Officer, Financial Accounting, Financial Forecasting.
This training programme is typically delivered face-to-face over a two day period depending on the depth required. The training tools used include:
- Explanation of concepts
- Group work
- Practical exercises
- Discussion and debate
This programme is delivered personally by Mike McCormac, an international expert in sales consulting, sales training and sales coaching that gets to the root of problems and helps clients implement pragmatic solutions.
- I think the workshop was very good. The presenter was fantastic and I would recommend him
- Very good and informative
- My first sales training which I have enjoyed. I had a few, but this one was the best.
- It was very useful. Helps to reinforce and introduce techniques.
Find out more
Please get in touch to find out if this could help you. I’ll get back to you within 24 hours to help you decide if this programme has value for you.