SALES COMPENSATION PROGRAMS
Our Sales Compensation Programs
Compensation is often the “glue” that makes any sales program work! Since it is true that most salespeople are “coin operated,” it is imperative that companies design and implement the best possible sales compensation programs.
The Sales Alliance provides clients with innovate, effective and proven sales compensation programs that address company-specific sales challenges and opportunities. We work with senior management to identify critical issues, their causes and appropriate sales compensation objectives. In addition, we interview members of the sales team to gain their feedback and test out potential compensation alternatives.
Our sales compensation programs can be provided in conjunction with our Sales Improvement Program, a sales training initiative or on a stand-alone basis.
Signs of Suboptimal Sales Compensation
- Lack of new account prospecting
- Missed sales quotas
- Purposeful delays in booking sales (“sandbagging”)
- Inadequate work hours or focus
- Difficulty attracting the right sales talent
- High salesperson turnover rates
- Aggressive competition
- Complaints about earnings potential
Sales Compensation Program Factors We Usually Address
- Ideal sales compensation pay levels based on industry, company size, job type and geographic location
- Amount of base versus incentive pay
- Incentives bases on non-sales factors (e.g. customer satisfaction)
- Methods of motivating teamwork
- The use of equity and stock options in sales compensation plans
- Innovative ways to incent adherence to the firm’s sales process and reporting requirements
- Payment of duplicate or team-based commissions
- Motivators for crucial sales activities such as new account prospecting and acquisition
- Sales compensation program alignment with company goals and management incentives
- Sales compensation program terms and conditions
Questions We Ask In Our Sales Compensation Program Analysis
- What are your strategic objectives over the next 3-5 years?
- Describe your company’s key business goals
- What salesperson behaviors do you want repeated?
- What behaviors do you want to cease?
- What prior sales compensation programs have worked? What has failed?
- What is your ideal sales process?
- How do you measure each sales process step?
- What is your target cost of sales (as a percentage of revenues or margin)?
- What sales compensation should a sales superstar be able to earn at your firm?
- What are the key motivators for each individual on your sales team?
- What types of contests, spiffs and motivators have worked well in the past? What hasn’t?
These are just a few of the questions we’ll be asking when we begin working with you on enhancing your sales compensation programs. Please contact us for additional details.
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