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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.Â
This is the time of year when companies are creating sales compensation plans for next year. Â They usually invest time in determin...
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 dif...
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 sa...
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 mea...
When brainstorming sales incentives to motivate employees, team incentives usually pop up. But typically the topic is followed by questions related to the effectiveness of these incentives. Some stakeholders may question if team incentives drive desired behaviors and business outcomes. During...
At the start of the sales compensation planning period, you will undoubtedly here the concept of “tweaking plans”. Instead of doing a complete overhaul on the sales compensation plans, many leaders will suggest to only “tweak” or slightly change the plans. This sounds like a great idea, becaus...
Many companies don’t desire to create complex commission plans, as business needs change some plans become complex overtime. Typically, a company will have a simple sales compensation plan to start. Then, as the company grows, and goals shift, the compensation plans change – which is best prac...
If you just started hiring your sales team, you may wonder if you need to give them a sales compensation plan (also known as a “commission plan”) to sign. You may think “It’s only 2 sales people, we can have a verbal agreement”. Well, you can definitely choose to do that if the sales professio...
You may assume that I am going to give you a name of consulting firm, or even this company Sales Comp Academy. However, the best sales compensation plans will not come from an external consultant doing the work outside of your organization. The sales compensation consultant will guide a compan...
Congrats! Your company is going to launch a new product into the market next year. I am sure this has been a long-awaited release, and many hours have been spent in this effort. Most likely including your go to market strategy and the channels you will be using to sell this product. But have...
Have you heard this before? Working in sales compensation over the years, I have heard this comment a few times from people who work in the industry. Businesses are sometimes challenged by their sales teams with this question. In some cases, the salesperson maybe correct. But what is fair? ...
When creating sales incentive plans, a common question brought up is shifting the timing of payments. An organization maybe paying sales incentives quarterly, but have the desire to shift to monthly payments. The main driver behind this is to drive sales earlier on in the quarter. Now this ma...
