If you’ve been in business for any length of time, you probably get a little flustered trying to create competitive and fair compensation plans for your employees, especially your salespeople. Pay can be extremely rewarding if it is competitive, or very frustrating if it is not. You see, employees pay close attention to their compensation plans. If you make changes to their plans, your plans may backfire. In order to protect yourself, you need to know what needs to be in a best-in-class sales compensation plan.
00:28 – Growing Sales through a Best in Class Compensation Plan
02:14 – What is a Best in Class Compensation Plan?
02:53 – Compensation Plan Objectives
04:38 – Putting the Plan together
04:56 – Step 1: Determine the Compensation based on discussions with other Businesses
07:36 – Step 2: Decide which items will be in the final Compensation Package
09:15 – Things to consider when designing a Compensation Plan
11:19 – Continual Evaluation
12:13 – Calculation of Gross Profit
12:41 – As Sales grow, Compensation grows too
13:51 – The reward should be equal to the service
14:01 – Allow for feedback
14:38 – Provide a Living Income and top Compensation to the High Achievers
15:22 – Summary
Before you put compensation plans together for your team members, you need to understand their importance. Good compensation plans can:
So then, what do you need to know to meet those compensation objectives?
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As you’re considering compensation and benefit options, keep the following things in mind for your plan:
In order to attract and keep top salespeople, you must offer them a best in class compensation plan. It must meet marketplace standards and align with your business’s core values. If your plan promotes friendly competition and loyalty, then you can improve your company’s overall sales which should subsequently increase your salespeople’s compensation. Be fair. Yet, be generous as your team members help you achieve success.
Also, be sure to look for my next article that teaches you how to manage your sales team efficiently.