Motivate & Compensate Sales
Motivate & Compensate Sales
Motivate & Compensate Sales
Sales Compensation is just one element of Sales Motivation. Comprehensive Sales Motivation elements include:
- President’s Club
- Variable Compensation
- Monthly Rankings
- Special Awards
- Coaching & Training
- Opportunities for career growth
As soon as a company reaches sustainability (and often sooner), reps expect to be rewarded for achieving quota by going to an all-expenses paid President’s Club trip to a nice resort with their partner/spouse for up to a week. If your company does not provide this, your best reps will gravitate to competitors that do.
Focus on Sales Compensation, the most important element that is sometimes ignored by sales comp plan designers, and the alignment of the plan with Corporate Goals. While the members of the executive team are usually in synch on the goals, they often have important differences on the priorities for sales behavior. Or, the number of sales behavior metrics grows to the point that they do not motivate sales reps at all. The Sales department is usually the most expensive and variable sales compensation is often 40% to 50% of that expense. This emphasizes the importance of getting the design right.
Some questions to ask about your Sales Compensation Plan:
- Does It Implement Corporate Goals?
- Does It Drive Desired Behavior?
- Does It Change with Corporate Goals?
- Does It Enable You to Attract & Retain Stars?
- Is It Easily Understood?
- Three to Four Metrics Maximum
- What % of Reps Achieve Quota?
- Can You Administer It Easily & Transparently (People, Data, Dispute Process)?
