No matter how generous the plans are, representatives are going to feel that "the other guys have a better deal."
View each sales associate as if he or she were an individual company. (Your firm as a whole is then like a big conglomerate.)
See how much you know about sales force compensation – take the following 10- question quiz. Answers are given at the end... if you have any questions please contact us!
Don't be intimidated if you pay less. Three-quarters of the time, sales associates leave a company for reasons other than money. Explain your value proposition; stress the services that you offer and the strengths of your firm.
In our work with hundreds of sales organizations, we see many making the same mistakes with regard to their top producers. To keep from losing your best sales reps, here's how to avoid these common pitfalls.
But we are also seeing companies succeeding, despite market fluctuations. Companies buying up other firms, recruiting top producers away from weaker competitors – companies that are growing rapidly.
One of the issues we discuss often with managers is why offering a choice of compensation plans is such a smart strategic move for the business, especially in this market. Here is what we tell them...
Is your business all hat and no cattle? In other words, are you focusing on increasing revenue at the expense of profit?
When management start talking about increasing profitability, sales representatives start to worry. They know improving profitability usually means cutting commissions and eliminating expenses, possibly for marketing, administrative support or benefits they value. They are concerned the increased profitability will come at their expense.
But that's not the way CM Global Partners and CompensationMaster approach the situation.
CM Global Partner's CEO, David J. Cocks, has recently been interviewed by David Massover in an Ebook titled Your Front Line Sales Manager - Glorified Sales Rep or Driver of Growth.