How Much Are Your Sales Commission Plans Costing You?
One of the most important questions that company leaders ask is “How much are these comp plans going to cost us?” That is where plan modeling or costing comes in.
This is the time of year when companies are creating sales compensation plans for next year. They usually invest time in determining the best mechanics (e.g. thresholds, accelerators, caps, etc.). They also spend an extensive am...
Recoverable Draw vs. Non-Recoverable Draw
If you have ever been in a sales role, or played a part in a sales compensation program – then you most likely have heard the term “draw”. There are two main types of draws, recoverable and non-recoverable. There are two types because they accomplish different objectives and are processed differently. Depending on your objective, you can utilize draws to enhance your sales compensation pro...
When To Use An MBO Bonus Plan
Before we go into when to use an MBO bonus plan, lets define what an MBO is. “MBO” stands for management by objective, it is a type of sales incentive that is tied to specific objectives, goals or milestones. Some companies also refer to it as a KSO plan, or key sales objective plan. Both mean the same – MBO & KSO, a sales compensation plan based on predefined objectives.
Subscr...
