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.
Are you waiting for your sales quotas to be finalized before starting your 2014 sales commission plans?
I recently read a blog that said it was fine to wait until January to create your commission plans if that was when your quotas were available. The person went on to say that not much happens in January anyways, so what is the problem?
45% of those who responded to a recent survey by Cornerstone Software knew in October that their sales strategy or sales objectives were changing for 2014. This group has a jump start on planning for next year. However, 36% of those who responded had no idea if their sales strategy or sales objectives were changing for 2014. It is critical to design your sales commission plans to focus on the right sales objectives. The old saying – you get what you inspect - is true. Make sure that you focus your plans on the correct strategy for 2014.
The joy of sailing is getting from point A to point B through a series of tacks or maneuvers in which the sailboat changes directions in a zigzag fashion. However my sister-in-law disagrees and says the best part of sailing is motoring! Motoring (though I think it is sacrilegious) is often the fastest way to get from point A to point B in a sailboat.
I recently began the oh so joyful task of potty training my two year old son. He showed every sign of being ready and I like any parent was more than happy to be done with diapers. Dreams of leaving the diaper bag behind, and all the magic of having a potty trained kid were soon dancing in my head. I had my eye on the prize. This was going to be great!
Whoa easy, I don’t mean it is time to start firing staff. I mean it is time to look at how you executed your strategies. You created a sales strategy and perhaps you even aligned your sales compensation plans with it but maybe you didn’t focus on the actual execution of these strategies.
Even if you envision the most genius strategy, it is only as good as it was executed. Executing a sales compensation plan by handing off some notes to a comp administrator who is armed with a spreadsheet and crossed fingers will not produce the results you planned for. What could go wrong?
Are your sales reps still wearing too many hats? Complex roles mean ineffective commission plans and missed revenue!
When you are at a start-up company, it is all hands on deck; everyone is wearing multiple hats, including your sales reps, which are probably Hunters/Generalists. You probably created a sales commission plan that encouraged selling to any customer, any which way. You need to get the customer base growth.