Every year we find December to be a fertile time for sourcing salespeople.\u00a0 One of the biggest reasons – the upcoming year’s compensation plan.\u00a0 More specifically, new commission plans tied to new quotas.\u00a0 The salespeople receive the new plan and are, well, disgruntled.\u00a0 Or ticked off.<\/p>\n
Good salespeople tend to look outside for new opportunities when their commission plan gets over-adjusted following a strong year.\u00a0 Let me speak clearly here – I am all for raising the bar, but you do have to take all<\/em> factors into account before setting the new targets.<\/p>\n ManageSmarter.com offers up this article – Fast Track Your 2008 Sales Compensation Plans<\/a> – with 10 tips for streamlining your comp plans.\u00a0 Point number 1 is crucial (emphasis mine):<\/p>\n 1. Keep it simple.<\/strong> I see that rule broken more times than you can count.\u00a0 I’ve been a sales rep under a complex plan where we had to have multiple meetings at the end of each quarter to reconcile the amount.\u00a0 My sales manager and I would spend multiple 30 min. meetings going back and forth on our “interpretation” of the plan and the commission owed.<\/p>\n The adverse side effect was the fact that even though I was making very good money, I was frustrated by the quarterly battle I encountered.\u00a0 I usually felt like I had been slighted even with the sizeable check.\u00a0 Talk about demotivating.<\/p>\n","protected":false},"excerpt":{"rendered":" Every year we find December to be a fertile time for sourcing salespeople.\u00a0 One of the biggest reasons – the upcoming year’s compensation plan.\u00a0 More specifically, new commission plans tied to new quotas.\u00a0 The salespeople receive the new plan and are, well, disgruntled.\u00a0 Or ticked off. Good salespeople tend to look outside for new opportunities when their commission plan gets over-adjusted following a strong year.\u00a0 Let me speak clearly here – I am all for raising the bar, but you do have to take all factors into account before setting the new targets. ManageSmarter.com offers up this article – Fast Track Your 2008 Sales Compensation Plans – with 10 tips… Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[20,23,4],"tags":[45,120,1764,121],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p5Oho-lq","jetpack-related-posts":[],"_links":{"self":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/1328"}],"collection":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/comments?post=1328"}],"version-history":[{"count":0,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/1328\/revisions"}],"wp:attachment":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/media?parent=1328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/categories?post=1328"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/tags?post=1328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nA straightforward plan makes it easy for reps to see how they’ll be paid. Don’t confuse and demotivate your reps with plans that try to do too many things. A plan is considered too complex if there are more than three to four performance metrics in the plan, or 10 or more conditions exist to determine credit allocation and payment release. Complex plans are hard to administer and maintain: They make it difficult to set up plans, to generate accurate results, and to timely respond to inquiries and disputes from sales reps. This can cause significant payee satisfaction issues.<\/strong><\/p><\/blockquote>\n