Wondering whether to do away with commissions and pay all your sales employees equally? What’s your excuse? That the economy is rough and selling goods isn’t as easy, or salespeople know that sales won’t come easy and may not want to sign contracts where their salary isn’t guaranteed? If this sounds like your argument, hang on as I tell you why commissions still work even in the most uncertain business environments.
For a long time, businesses have used sales commission-based compensation structures to motivate their teams to work towards the company’s set objectives. This method of compensation makes it possible to recognize and reward hard workers for their exceptional performance in the organization. Besides, paying commissions provides a company with flexible payment terms that don’t rely on a set monthly salary but the generated revenue.
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. A good sales compensation plan is a key component of any business strategy. An excellent sales compensation plan will get the salesperson concerned about the welfare of the business since its success translates to the sales rep's personal success.
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.