---
title: The importance of forecasting your commission strategy
description: Forecasting is important in the sales world, and commission plans are also included. We just can’t pick numbers out of the air and say “I’ll give you X percent or revenue for these accounts”. We alway
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# The importance of forecasting your commission strategy

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## Your commission strategy keys to success

Forecasting is absolutely important in the sales world, and of course, your **commission strategy** is also included. We just can’t pick numbers out of the air and say “I will give you X percent or revenue for these accounts”. We always have to go through the implications of what our sales reps are receiving and what are we giving to them. This is also helping the department director or manager to know which risks he should take.

Let’s remember that a commission payment forecast is **the salesperson’s best estimate** of how many sales he has to close in a given period of time. Therefore, it allows them to plan their personal expenses too; they will know with high certainty what their commission payment and estimate would be. With a clear forecast, a salesperson can commit to that vacation, car or house he wants to purchase.

Sales departments should be completely able and capable of having a well-managed commission strategy and payment forecasts, leaving the company with planned and structured compensation expenses. It is very important to use a commission tracking solution able to provide the sales force with the full understanding of how commission payments are calculated. One of those solutions is **[Blitz](https://blitzrocks.com/?hsLang=en)**, which provides the needed insight work to drive forecast accuracy and **perfectly perform your commission strategy**.

If the sales person has a **clear commission strategy and payment forecast** and starts committing to certain personal expenses, the company will also benefit by having a motivated sales team. Because, at the end of the day, while they are achieving their personal goals, they are also achieving the overall goal of the company.

##### Sources

- Book: Simple Numbers, Straight Talk, Big Profits. 4 Keys to Unlock Your Business Potential. By Greg Crabtree. Greenleaf Book Group Press, 2011.

 

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