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.
Updating Sales Compensation Structure
Answers
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
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
Filed Under:
Human Capital