A well designed and well executed sales commission plan should benefit the employee, employer, and even the client. It should serve as a motivating factor to meet sales objectives and sales performance targets.
There are many components, however, to a winning sales commission plan, and it is important to strike the right balance between variable and guaranteed compensation. Follow this checklist to create the best possible commission plan to fit the needs of you and your team:
Have you defined your Sales Objectives?
Sales objectives should be clear, well-defined, and specific. There should be a timeline for each objective, and sales objectives should reflect the vision of the organization. Will your team increase revenue by a precise date or win a certain number of new clients? Knowing your organizational goals and objectives can help you set up a commission plan to encourage behaviors among your team to get you where you want to be.
The process of defining these objectives is not only about writing them down, however, but also about distributing the goals amongst your team members. Sales objectives are only effective if every member of your team is striving toward the same end and it is critical that every team member at every level understands the end with which to work toward.
Is your Sales Commission Plan easy to understand and administer?
Your commission plan may be meant for multiple audiences. It serves to provide incentive and motivation for your sales representatives, but also is a way for your team to meet and communicate sales objectives that you have outlined. Complicated commission plans are often times less efficient, and team members must spend time trying to understand expectations. What is more, complicated plans may take longer to distribute, and team members may wait longer to be rewarded for their sales.
Do you have Clear Expectations that allow you to Reward Top Performers?
Finding the perfect balance between a competitive salary plan and variable commissions, bonuses, and other incentives can be difficult. By outlining a commission plan that targets concrete objectives, expectations will be clear for team members looking to go above and beyond. The differences between salary, commissions, bonuses, and other forms of compensation should be clearly outlined by type of work completed and timeframe. Sales professionals should understand what parts of their job and pay come from what type of work. This clarity is often motivating and leads to a more productive team.
Do you have the Team you need to meet your Goals?
A well designed commission plan tends to attract great sales team members. Great team members are excited by the prospect of growth and achievement above and beyond the usual level. A healthy level of competition can be highly motivating when there is a connection between performance and reward.
Make the move toward a better commission plan and take your year to the next level. Get all the help you need with Blitz as your new team member. Reach us from here to talk to our highly trained team members and get more information about what Blitz can do for you.