Top 2 Tips Before Building Sales Compensation Plans
by Shirah Smail
Nov 14, 2024
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Are you working on sales compensation plans for next year? Don’t know where to start? If so, this blog is for you.
When thinking about sales compensation plans, some people think “just pay the sales team a commission rate and call it a day”. While its best to keep sales compensation plans simple, there is an actual systematic process in designing sales compensation plans.
However, before even stepping into the design process, there are 2 key tips that will help you. If the items in these 2 key tips are not well defined then it will cause frustration in plan design and most likely plans will not achieve the desired results. These are the top 2 tips:
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.
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If you have ever designed sales compensation plans, the suggestion to build an incentive plan and then change it quarterly may have been proposed. Perhaps leadership needs this flexibility because of the many unknowns in planning. Maybe the company is going through restructuring, where the sales organization and goals are shifting – yet the sales team needs a pay plan so that they can be re...
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