A little bit about split-commission payments to benefit your sales reps
When a business grows there is always the need to hire more employees or sales reps to keep up with the increased demands. In most situations, when a business starts, it starts with at least one salesperson (who may be the owner) and later recruit salespersons who proves that they are able to take on the larger tasks in the line of goals management, time management, commission tracking and other key elements. When your business records a large sales force, then a demand for well-served sales departments grows. Having a well-served department has always looked a bit complex for most companies to manage financially. And that’s why it is important for a company to split-commission payments when rewarding salespeople.
To come up with a commission plan that will accommodate spit-commission payments, you should first identify the commission rate, commission tracking method, total commission and the commission splits. The importance of this process is to help you figure out the right channels on how you should apply the commissions. This is because split-commission payments occur when the commission % is distributed among the participants. It can be distributed equally, or weighed, depending on each sales rep's contribution.
Although to split commissions may seem like just distributing the payment in the sales group, it needs you to distribute equally, or weighed, depending on each sales reps' contribution. The main aim is to divide the commission banked sales reps efforts and depending on the initial agreements within the department.
It is important to note that a split commission payment is only appropriate in situations where two or more sales reps are involved in a big sales opportunity. Besides, the terms and conditions (rules) need to be spelled out clearly before the parties engage together in your sales department. This way the salespeople can manage their expectations appropriately.
Although split-payments look appropriate for big sales opportunities, it should NEVER be used on small sales projects. If a company is not able to define the type of sales projects they have, Blitz is available to research your sales field and help you manage yout commission plan and do an excellent commission tracking that goes in line with your sales opportunities. For split-commission payments, Blitz is available with all type of solutions and commission tracking processes - whether you decide to divide the commissions in equal parts, assign percentages in proportion to the effort or difficulty involved, or use a specific technique.