First 10 Questions
The following are a few tips and questions to consider when analyzing your sales compensation plan.
A SUCCESSFUL SALES COMPENSATION PLAN IS DEFINED BY HOW WELL THE SALES STAFF…
How comprehensive is the sales staff’s sense of the economics driving the business?
Is anything wrong with the current sales results? If so, is compensation the right repair tool?
What history and interactions that have nothing to do with compensation plans and practices continue to hinder optimum performance?
What is the company specifically paying the sales force to generate?
Should any compensation distinction be made as to:
How does the company’s environment, management, territory distribution, and training impact performance and in turn compensation?
What is a tolerable level of compensation risk for a solid sales performer? For the company?
What compensation mix (base, commission, bonus, etc.) will attract the selling skills the company requires?
What compensation mix will stimulate improved performance?
Are there relevant windfall issues, or other business conditions that impact the perceived fairness of pay?
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Dan Kleinman ConsultingPhone: 415.334.8010 • Fax: 415.452.3394E-mail: firstname.lastname@example.org
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