After spending 25 years in corporate America there was one thing I found as predictable as death and taxes; is sales executives dissatisfaction with sales compensation plans.Inevitably, senior management was worried that some sales professionals or teams were getting a wind fall, or the system wasn't motivating the sales people to perform as desired.
On the other hand, sales professionals we're almost paranoid about management constantly tweaking the sales compensation plan. Leaving them in a quandary about what they needed to focus on, and how they were going to be rewarded for success year in and year out.
Finally, the VP's of Sales and Sales Managers we trying to keep both sides happy and focused on the business of selling!
As a result, I decided to do a four part series on the basics of sales compensation.
Effective sales compensation plans are deemed successful when both the company and sales professionals are motivated by the behavior the plan is designed to promote.
There are many reasons why sales compensation plans fail; however, the most often sited is the lack of connectivity and alignment between desired company results and day to day sales activity that ultimately drives results.
In the next three blogs, I will cover the three types of sales compensation that are typically employed.
Copyright © 2014 Dave Neal
Our Blogs are Authored by various members of the NEALABC team.