In the latest poll by Cornerstone Software 55% of those who responded missed their 2013 revenue goals by 10% or more. That means if you are a $5m company, you would have missed your revenue goals by $500,000 or more. That is a huge shortfall in revenue. I can’t help but wonder how much of that shortfall was due to a bad sales compensation plan. Did you just dust off the 2013 plans for this year and expect a different result?
A badly designed sales commission plan can manifest itself in many ways. These are some of the most common:
It’s New England and this winter we have been getting stuck a lot! As I was sitting at the airport waiting for yet another weather delayed flight, I started thinking about what causes sales reps to get stuck in a rut. Are your sales reps stuck doing the same old thing they did last year? How did that work out for you? Did you make your revenue goals?
You’re partway through the first quarter. What can you do to inspire excellence in your sales organization so you can crush your 2014 goals?
Inspire excellence by creating a team of winners is no easy job but if you can inspire the sales teams to reach new heights your sales organization will be happier and the company owners or shareholders will be delighted. Creating this team of winners makes attracting top talent easier and retaining top performers a piece of cake.
So often in the beginning of the New Year your sales reps are exhausted. If your commission plans were structured correctly these reps spent lots of extra time in December closing every deal possible because they understood that their commission rates would drop in January when the new 2014 sales commission plan was rolled out and they wanted to get that accelerator rate on everything they could.
It is almost January 1st. You have been busy closing the year strong. Your 2014 sales commission plans are complete. Now how are you going to tell your sales reps their quotas are going up and their rates are going down! What is a sales manager to do?
Over the summer we began the planning process to be an exhibitor at some tradeshows, part of that planning is to figure out what you will giveaway…you have to have some kind of tchotchke to draw people over. We looked at many different items, really nothing jumped out at me as unique or interesting that wasn’t super expensive. I really don’t want to waste money on stuff that people are just going to throw out.
Now that it is sales compensation planning season, there are many things that need to be thought about. For me the start of every good plan begins with a discussion about what is the work that needs to be done by this sales job role and what are we willing to pay for it.
It’s that time of year again. We break out the dusty box of costumes and decorations from the attic or head to the Halloween shop for some ghoulish gear. We will put on our spooky attire and hit the streets hoping to score a major haul of candy goodness. Or maybe you are the lucky soul answering the door over and over again for 3 hours.