The SCN Blog

The Sales Comp Network blog focuses solely on sales incentive topics. Subscribe for FREE to get instant access to all of our posts and receive the latest content by email. Each post has actionable tips that will help you create or improve your sales compensation program!

Tags: sales compensation management

Showing 12 results:

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 dif...

by Shirah Smail — Nov 16, 2024 creating sales compensation plans sales commission sales compensation management

Changing Sales Compensation Plans Quarterly, Does It Work?

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...

by Shirah Smail — Nov 16, 2024 creating sales compensation plans sales comp analysis sales compensation management sales effectiveness

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 mea...

by Shirah Smail — Nov 16, 2024 creating sales compensation plans mbo sales compensation management

Do Team Incentives Work?

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...

by Shirah Smail — Nov 16, 2024 creating sales compensation plans design factors sales compensation management sales effectiveness

Tweaking Compensation Plans – Is it Good or Bad?

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...

by Shirah Smail — Nov 16, 2024 creating sales compensation plans design factors sales compensation management sales effectiveness

Do I Need To Create Sales Compensation Plans?

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...

by Shirah Smail — Nov 16, 2024 creating sales compensation plans sales commission sales compensation management

Top 3 Tips for Choosing an ICM Tool

So, what is an ICM tool? An ICM tool is an incentive compensation management software. With the rise of AI, technology and automation, you will find countless options online. Each of these vendors have their pros and cons, but their bottom-line functionality is processing incentive or commiss...

by Shirah Smail — Nov 16, 2024 icm sales commission sales compensation management sales compensation program

Why Do I Have To Pay 10 People For 1 Sale?

Have you been asked this question before? or maybe its a question you have? As most sales comp practitioners know, the amount of people that is paid on a deal is based on a company's roles, sales compensation plans and quotas. If there are unnecessary roles in the sales process then the amount...

by Shirah Smail — Nov 14, 2024 creating sales incentive plans sales commission cost sales compensation management sales compensation program sales incentives

Unfair Commission Structure?

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? ...

by Shirah Smail — Nov 14, 2024 creating sales compensation plans sales commission sales comp analysis sales compensation management sales compensation program sales effectiveness

Paying Commissions: Is shifting to monthly vs quarterly worth it?

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...

by Shirah Smail — Nov 14, 2024 creating sales compensation plans sales compensation management sales compensation program

We’re Paying Too Much In Sales Comp!

But are you? We hear this often from senior leadership. While this may be true, there are cases where it is not true. Instead of looking at straight cash out, look at commission paid relative to revenue. From this perspective, you can you determine if you truly are paying too much in sales c...

by Shirah Smail — Nov 14, 2024 sales commission sales commission cost sales comp analysis sales comp cost model sales compensation management sales compensation program

SPIFF vs. Comp Plan

So, what is a SPIFF? A SPIFF, also known as a SPIF, is a sales performance incentive fund. It is cash paid on top of a sales compensation plan for a specific objective and predetermined time period. Typically, in the form of a sales contest.

by Shirah Smail — Nov 14, 2024 sales commission sales compensation management sales compensation program sales incentives spiff or spif

The SCN Blog

The Sales Comp Network blog focuses solely on sales incentive topics. Subscribe for FREE to get instant access to all of our posts and receive the latest content by email. Each post has actionable tips that will help you create or improve your sales compensation program!

Tags: sales compensation management

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