Sales Compensation Review

A well-conceived sales compensation plan, incorporating the factors listed below, will inevitably have a positive impact of the health of your company. In most cases, our clients have been able to observe measurable increases in their sales and profits. As you look at these considerations, you can see why the periodic assessment and review of your entire sales compensation program is an important priority.

Productivity What and how much your salespeople are accomplishing is at the very core of any productivity discussion. By closely examining what you are doing today, a careful look and review of your current plans will generally uncover areas, such as client or account coverage, assigned responsibilities, or individual salesperson effectiveness. Some of this might merit attention or changes.

Competitiveness Business seems to get tougher all the time. And it constantly changes. The impact of newer methods of reaching your clients, customers or prospects, such as e-commerce and telemarketing, can serve to make the conventional approaches to sales compensation out of date. Changing forces in the market place call for an examination of different reward strategies.

Motivation Some people have said that if you have to motivate a salesperson, you’re working with the wrong person. Not true. In one form or another, everyone benefits from a little tail wind in achieving their objectives.


Lets talk about your current compensation plan and find out if it's really working for you.

Measurement and Accountability One of the results of taking a fresh look at your compensation plan is that it makes you delve into individual assignments, territory or account potential versus results, and helps to hold individuals more accountable for their performance.

Salesperson Retention and Hiring If your compensation plan doesn’t stay competitive with other companies, you risk serious problems. While developing an effective sales force is critical to the success of the company, it will only continue so long as you continue to attract and then retain quality, high caliber sales personnel.

Communication A good compensation plan, which highlights new or existing business, different products or services, or seasonal needs, is an effective way to communicate your priorities for your team. The details of the plan can provide the measurements, criteria and standards you will use.

Morale Part of a well thought out compensation plan are concepts that directly benefit salespeople directly, for example, high rewards for high producers, fairness, and respecting the value of the sales group. Taking the time to make sure you have the right plan for the right people sends a very positive message to the entire company.

Return on Investment In as much as sales compensation can be a significant share of the entire sales administration budget, it is important to ensure that every dollar paid in sales compensation has a very good ROI. A plan evaluation can lead to associated management decisions and actions that result in either (1) lower costs or (2) a higher return on dollars spent.