How to Design A Sales Compensation Plan that Rewards Performance and Boosts Revenue

In my 30-plus years as a sales executive and sales leadership consultant, I’ve identified a critical error most sales organizations make: not crafting a sales compensation plan that effectively motivates and rewards performance as it drives bottom-line financial results. One reason for this persistent problem is that most companies don’t appreciate the uniqueness of the…

Three Questions for Hiring Your Next Sales Leader

Three Questions for Hiring Your Next Sales Leader   Fifty-two percent of small to mid-size businesses fire their sales leader within 18 months of hire (according to SBI). This statistic is troubling. It is especially troubling because it should be easy to hire a high-performing sales leader – if you know the right questions to…

Study Reveals Alarming Sales Compensation Plan Trends

Your company’s sales compensation plan has a big impact on your team’s motivation, performance and results. No surprise there. What might be surprising, however, is that many companies sabotage sales success with weak, poorly understood, or mismanaged sales compensation plans. Recent results from an ongoing study confirm that such plans are the unfortunate norm; and…

Straight Commission

8 Reasons Straight Commission Sales Compensation is a Terrible Idea

Straight Commission Sales Compensation is a Terrible Idea. Here are 8 Reasons Why: Straight commission sales compensation sounds great to many business owners. After all, it seems low-risk and high-reward: if salespeople don’t produce, they don’t get paid – but if they sell plenty, they earn plenty. Everyone wins, right? Well, not very often. It is more…

Money

Do You Know the 4 Parts of a Successful Sales Compensation Plan?

In an early article on the Sales Xceleration website, I shared the 5 Keys to a Successful Sales Compensation Plan. In that article, I noted that successful plans accomplish the following. They: Benefit both the company and the sales team employee Incent desired sales behaviors and performance Are easily understood, implemented and managed Strike the right…