Why You Need A Good Sales Commission Software

If you want to determine whether your business is doing well or not, look at your sales transactions. Not many businesses are able to track their sales transactions and sales commissions effectively. It maybe high time for a sales commission software. Here are reasons why you need one. In fact, some businesses still use spreadsheets, cash registers, and paper files to manage their sales records.

These methods could be viable if you are dealing with one or two salespeople. But, think about a growing company with multiple plans that have commission splits, bonuses, different commission rates, overrides, and guaranteed payments. Executing such an elaborate commission plan using spreadsheets or other manual platforms is definitely tedious and error-prone.  

With manual methods, when you want to study sales reports, it’s possible that your sales managers won’t produce an up-to-date report. It may take even up to 30 days to come up with a commission report when using spreadsheets. What’s more, such reports may have errors. This means, whatever information you get will not give the real status of your business. And this is where a good sales commission software comes in handy. 

Over time, businesses have become highly reliant on spreadsheets for monitoring and tracking sales commissions. But are the struggles with spreadsheet errors worth it? Here are reasons why you need a good sales commission software.

What Can Good Sales Commission Software Do for You? 

1. Eliminate Errors and Save You Time 

A good sales commission software automates your processes thus making it possible to obtain accurate results within a short time. When you feed the sales data, you can see various metrics in real-time. With manual calculations eliminated, chances of errors are also minimized. Besides, sales data is organized faster and your team has a lot of time that can be dedicated to actual selling activities.  

2. Improve Performance Visibility 

Sales incentives data is a valuable resource when studying key performance indicators. This is why you need a commission software that can produce accurate data and present it in a visualized manner. As business leaders use it to make corporate decisions, salespeople can also evaluate their individual performance using the same data.  

3. Implement Complex Commission Plans With Ease  

Many entrepreneurs understand that the compensation plan is an effective strategic tool for motivating desired selling behavior. It, therefore, calls for a competent incentive management solution to execute incentives and commission calculations based on channel, product, number of units, value, and location, among other variances. A good system can also handle commission splits for multiple payees, manual overrides, draws and adjustments, etc.  

4. Improve Transparency and Foster Confidence in The Incentive Plan 

Any reliable software will provide real-time reporting of the sales numbers and commission status. Besides, such a system makes it easy to explain the commission plan to your sales reps. Basically, it’s easier for them to believe in a commission plan when they understand how it works. And if they understand, you get fewer sales compensation issues. It also lowers frustration and suspicion within your sales force. In the end, you’ll have satisfied sales reps with higher chances of performing better.  


Tacking sales data is vital for effectively running a business. You need the data to assess the current state of your enterprise, forecast future revenue, monitor the progress of individual sales reps, and estimate the effect of contract renewals. Clearly, you can’t entrust this important function to an inefficient system. Consider competent sales commission software and avoid costly spreadsheet horror stories most businesses are experiencing already.