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Sales Compensation Philosophy
 Sales compensation is one of the most important aspects of managing a sales group. Yet we firmly believe that an effective plan need not be complicated, controversial, or difficult to administer.
A sales compensation plan must support and complement corporate sales and business goals. Beyond that, these following principles guide our client conversations:
- Salespeople should be involved. It is their plan, and their input is essential to success. While management makes the final decisions, sales participation inevitably yields better results. “Buy in” is important.
- A good plan is one in which management is eager to remunerate superior results with big rewards. Hefty checks should be synonymous with a company’s growing sales and swelling profits.
- Plans should be formal, in writing, evaluated yearly, and acknowledged by every participating salesperson.
- A primary objective is to direct the salespersons’ priorities and behaviors toward achieving your strategic and shorter term objectives.
- Flexibility is critical. The plan should be able to react to rapidly changing markets, products and competitive offerings.
- Compensation plans send a strong message about your sales culture and values. They need to be well thought out.
- There is no perfect plan. Nevertheless, when a company conducts a thorough, good faith review of compensation, nothing but positive results occur.
If the philosophy we advocate is in line with your own, or just seems to make sense, please email us or call us at 949-502-4973 for further information.
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