Management Plan For The Sales Compensation Plan Essay

Management Plan For The Sales Compensation Plan Essay

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One of the biggest problems that can be a challenge to management is how to effectively compensating salespeople. Management does realize that they need an incentive plan that encourages salesforce to land new accounts without the breaking the law and to continue to upsell existing customers. Finding the right balance between base pay and commission for any sales force is a challenge. The biggest question is whether it will be commission-only model or more of a base pay and have a bonus or commission after a certain point. What parameters will be set for performance and how will this performance be measured?
The one thing that needs to do is to set up a sales compensation plan that would put the marketing strategy into operation. Developing and designing the incentives plans needs to be approached strategically.
The sales compensation plans should be documented, planned, and well written. A standard of operation plan should be developed to cover the sales compensation plan. Everyone that needs the standard of operations plan for sales compensation should have a copy on hand. This is a great tool for managers and supervisors to use it as sales strategy goals and to get the sales staff motivated.
• Strategy- What is actually the business is trying to achieve, the business case and the sales strategy of the business.
• Payout formula - How the staff is going to benefit from their hard work and get paid for meeting the company’s sales goals whether it is commission only, straight pay, or a hybrid with a base pay and commission combined.
• Performance measures- the measuring stick of how performance is gauge and to help the sales force to stay focus and to use as a guide.
• Governance- this will lay out in detail h...


... middle of paper ...


...Maybe add contests or quick campaigns at a certain time of the year to give it an extra boost. Have merit- pay performances and assessments documented and done at least yearly if not quarterly. The plan should clearly outline and layout all of the sales representatives job duties and responsibilities.
Managers and supervisors should be giving feedback in a timely manner and hopefully is proactive and not reactive when it comes to solving personnel and sales issues. Managers and supervisors should be scheduled time and thank personnel for doing a great job and keeping morale high within the department. Making sure there is a way to keep track on high performance and stellar performance for incenting and it should not be just annually.
How to Set Up a Sales Compensation Plan. Retrieved November 22, 2016, from http://www.inc.com/guides/sales-compensation-plan.html

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