This is the last in the series of four blogs on sales compensation; the hybrid or combination model. As a quick review we covered:
Let me explain, for many Business to Business (B2B) sales, the sales process is longer and often requires involvement by the entire enterprise to close the deal.
This inherent need for internal collaboration requires sales professionals to expend time and effort promoting, refining, and directing the internal aspects of the sale. This activity is a must especially in the tier one larger sales opportunities.
Thus, without some of the sales person's compensation( base) being attributed to these activities, it is frequently avoided and the entire chain of continuity between the customer and the total enterprise is sub-optimized.
Adjusting the exact percentage of base vs. commission and striking the proper balance is what management must noodle through!
There is no one formula that fits every circumstance.
If you keep in mind what your sales process is and what are critical components that contribute to closing the sale. You'll be well on your way to reinforcing the right behavior and compensation plan for your business.
Copyright © 2014 Dave Neal
Our Blogs are Authored by various members of the NEALABC team.