We’re working through some commission plans with our customers and one of the plans has a function to where the salesperson has to clear a certain quarterly revenue level before the commission plan kicks in.  This approach is somewhat common and has its merits.  Personally, I am not a fan of it for one reason.

Sandbagging.

I’m not talking about preparing for a flood (though there was plenty of that activity up here this summer).  I’m talking about getting a deal to the point where it can close today, but the salesperson holds it until the beginning of next quarter, month, week - whatever constitutes the commission time frame.

I know salespeople sandbag deals because I have done it plenty of times in my sales career.  And it only stands to reason - if I can frontload my commission plan at the beginning of the period, I have a better chance of exceeding my quota and accelerating my commission rate.

Keep that move in mind and you develop your sales commission plans. 

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Posted By Derrick Moe | Compensation | |