Do you consider your sales compensation plan a key component of your business strategy? Surprisingly, not many businesses do, even though compensation plans have direct effects on hiring, retaining, and motivating workers. Additionally, how you compensate your sales team will have implications on your company’s bottom line. This makes an effective payment plan a critical element in the success of a business. Here is a look at why your company needs a good sales compensation plan:
Sir Isaac Newton made observations that have remained undisputed thus far. Because of his observations and accompanying mathematical proof, we now believe that “an object at rest will remain at rest, and an object that is moving at a constant velocity will continue moving at a constant velocity unless acted upon by an unbalanced force.”
How has your year been so far? For seventeen-year-old John Dumoulin of Northern Virginia, U.S, things couldn’t get any better. Having emerged the winner of World Excel Spreadsheet Competition, he now becomes the international champion in a category that hasn’t been won by an American in 16 years! Besides, this win gained him $10,000 in prize yet he enjoyed an all expense paid trip to Anaheim, California, during the world excel competition.
When shopping for a software solution, one of the challenges many businesses face is finding an unbiased review of a prospective system. With every provider praising their software solutions, buyers have little practical information to gauge how a system will perform and if it’s worth their investment. They are left with the option of trying the system and learn about its efficacy on the job. This is risky, costly and, in some instances, a waste of time.
This is a dilemma many businesses find themselves in, in fact, even when there are justifiable reasons for a business to consider forfeiting commission payout. The first reference for such a business would be the agreement in place regarding commission payout. This is why each sales contract should have clear terms defining the duties of a sales representative, their expectations, and those of the employer in relation to every aspect of the sale.