more-arw search

Q&A Forum

Updating Sales Compensation Structure

My sales staff has gone from a commission only structure to a base & commission structure and I don't think that it is working well. I was hoping for some advice about how to best audit and adjust the current plan to make it more appealing to new sales reps and cost-effective for the company.

Answers

Anonymous
(Consultant) |

1. Ensure you are benchmarking your sales force paymix with industry standards
2. Full commissions are typically used for contracted sales force, which might be involved in multiple clients sellling
3. It appears ur sales force is b2c - further detaila on ur industry, product maturity, selling touch points, commissions structure (flat/tiered). Forecast accuracy will be appreciated to get more sense
4. For financial controls, try using monte carlo probabilistic distribution s to get the budgets in place. This can be a working session with ur sales leadership and finance team
5. For pure audits of ur salea plan, try this:
a. How are u paying ur high sales rep wrt low performing rep
b. What is ur 90 percentile and 10 percentile ( should be idealy 250% payout and 40%)
c. Average payouts should be arnd 100% of ur allocated budget
d. How does ur payout corrrlate with growth rates in that terr.
e. is a rep tenure bias his payouts
f. check marginal profits with attainments

1126 views
Products and Companies

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.