This is a the quickest of quick tips because its a simple concept, easy to explain, but very powerful.
Pay Your Sales Reps Well:
Its my long held philosophy to pay sales reps well. The reason is that good sales reps are highly motivated by money and will work very hard to maximize their earnings. A balanced sales compensation plan will reward a rep for revenue productivity but will also take care of the corporate bottom line. So both the rep and the company win.
Then Pay Them More:
Every rep should have a sales goal with clearly stated compensation tied to the goal. But when a rep goes OVER their goal, pay them even more. Example: “You get a 10% commission on all your sales up to your goal. But I’ll give you 12% of every dollar above your goal.”
The is a classic financial carrot that will appeal to good sales reps who will work as hard as they can to get to the big bucks. The company is essentially giving up (in this example) just 2% of margin for every incremental dollar which one can presume is still very profitable.
Too many companies treat their reps with frugality. This is not logical. A generous but performance based comp plan is the way to go.
Last thought: A good sales rep who is not well paid will eventually go to a company where they can make good money ….and the mediocre reps tend to stay where they are …with all the other mediocre reps.
Related link: Sales Compensation & Commission Calculator
Thanks for reading my blog and please visit again.
Vincent out.
