SALES RECRUITMENT, SALES RECRUITERS & SALES RECRUITMENT AGENCY
Sales Commission Plans
"What gets measured in sales gets done." and ...
"What gets measured in sales & also rewarded accordingly gets done even better!"
This is the consistent philosophy underpinning all variable reward programs, with sales commissions being perhaps the most transparent and highly visible of these plans. Knowing how to structure salary packages of salespeople in a way that maximizes sales is an important factor in the success of any business.
While commission based compensation isn’t the only or even necessarily the best way to compensate a sale force, it is predominate in most industries that rely on a direct personal sales force to market their products or services.
The basic problem with many of these commission plans is that they are expected to not only encourage the sales person to produce, but to shape other behaviours as well. And that’s where the problems lie.
A successful sales commission plan should possess three (3) important characteristics. If yours is lacking any one of them, there may be problems.
Here are the basics:
- The plan should offer an immediate reward to the salesperson for doing the things you want done well
- It should be VERY clear and simple to understand for everyone involved
- It should be relatively free of influence from factors outside of the salesperson’s control
A sales commission plan based on these principles will reward the company by doing what it's supposed to do, encourage profitable selling efforts by the sales force.