As discussed in “Sales Compensation Plan – Goals” (10/22/09), your sales compensation plan needs to be based on achieving specific goals – corporate, personal and sales team retention. To design your plan, you will incorporate compensation elements such as quotas, awards, bonuses and commission payments that motivate your sales personnel to achieve the plan’s goals. [...]
Archive of entries posted on October 2009
Sales Compensation Plan – Why Pay a Base Salary?
In today’s economy, I see many postings by companies looking to hire sales professionals on straight commission. Their logic is that if a sales representative is good, the rep will have no problem “eating what they kill.” Straight-commission sales reps are inexpensive to bring on board, do not add to your company’s overhead, and are [...]
Sales Compensation Plan – Goals
Overview Your sales compensation plan needs to motivate your sales representatives to accomplish three goals: Achieve your corporate revenue goals Realize their personal and professional goals Want to work for you and your company In addition, the sales compensation plan should enable you to attract new sales reps as your organization grows. How do you [...]
How Many Sales Reps Should I Employ?
The number of field sales reps you need to cover a market is a function of the size of the target market (number of prospects, number of customers and size of geography), the complexity of the product or sale, and the level of sales support. The number of sales reps you employ is a balance [...]
How Much Territory Should I Give My Sales Reps?
When it comes to territory, often less is more.
Direct Sales or Channel Sales?
What’s the best way to bring your products to market – direct sales or channel sales?
To answer this question, you need to consider four variables: the cost to hire sales representatives, how much control you want or need over your sales force, the availability of technical sales expertise, and the complexity of your product and sale.
