Right now the sales leaders at top companies are doing something you’re not: sales compensation planning for next year. Often overlooked, sales compensation planning is a mission-critical process that will ensure your company is headed in the right direction… with all the right people on board. A well-designed, legally-reviewed comp plan can keep you out of the courtroom, as well.
So what exactly is wrong with your old sales compensation plan? Maybe lots of things…
· Its commission and crediting terms are unclear
Millions of moviegoers flocked to see Inside Out this summer, eager to meet the little voices inside their heads. The Disney plot follows five forms of emotion inside the mind of a young girl, Riley. And when she experiences a major life change, her emotions get mixed up in some humorous, though complicated ways.
What’s the most important sales enablement tool your company can invest in? Here’s a hint: it’s not your CRM. It’s not your proposal software, or even the technology that helps you perform product demos and design fancy presentations. None of these tools deliver the same ROI as sales compensation software.
If you think that’s a biased opinion, check out what others are saying…
Sales compensation planning isn’t complex. Yet many business leaders are confused about what’s involved and who should be involved. This post aims to demystify sales compensation planning and the three myths that prevent smart companies from getting sales and strategy aligned, once and for all.
1. Commissions are just another business expense.
Remember when Whitney Houston came out with her big hit, How Will I Know? (If you’re too young, just pretend this isn’t a thirty-year-old pop culture reference.) The song asks you (“cuz you know about these things”) to confirm whether or not Whitney’s in love, for real. And it’s a good question…
Just as love can be deceiving, ineffective sales commission plans aren’t always obvious in their flaws.
Is your sales compensation analyst using spreadsheets to administer commissions? Lots of emerging companies are still saying yes to this question—some even Googling phrases like, “how to calculate sales commission in Excel.” If you’re one of them, we hope you’ll keep reading…
Looking for advice from today’s leading commission consultants, sales authors, and sales management experts? We happen to know a few guys (and girls) who wrote the book on sales compensation—literally.
We’ve been lucky enough to meet most of the folks on this list. Others we just admire from a far (in an information-seeking, non-creepy way). Add them all to your “Commission Consultants” or “Sales Expert” Twitter list.
As the midpoint of your fiscal year approaches, you may be seeing some alarming trends. Either too many of your sales reps are below quota, or too many have surpassed it—and now you’re realizing just how expensive your current sales comp plan is going to be or how far off your revenue targets you really are.