The question any good sales consultant will have is going to concern compensation. Experienced sales staff expect commission-based payment or monthly or quarterly incentives, but they also expect a commensurate salary. Many sales positions are fully commission-based, and those tend to pay more. The guide to sales compensation helps companies decide which method works best for their business, shareholders, staff, and bottom line. The customer is the most valued component, but a happy sales force runs a close second. Different industries have similar compensation plans for their sales force, and most companies use the method that attracts the best sales leaders.
The Right Compensation Plan Attracts the Top Sales Performers
The guide to sales compensation suggests that companies implement a plan that pays their sales staff regularly and consistently. If the plan is commission-only compensation, then the company should consider paying more frequently, such as biweekly or weekly if feasible. Some companies pay salaries more frequently and incentives once a month or quarterly
Commission and Incentive Payment Structure
Sales staff are happier when they are paid and look forward to producing higher results. Many sales teams prefer a salary plus commission or incentive plan. They want to have confidence that they will have earnings based on effort and not just closings. This payment plan is typical in phone sales and subscription services.
Hundreds of industries use the salary plus commission payment structure because of higher sales and less attrition. Companies will consider factors such as the size of their budget, sales analytics, and the size of their team to determine sales compensation. Other factors that are considered are location, competition, customer demand, and company expectations.
Contact The Sales Coaching Institute at SalesCoach.us for the guide to compensation to help your company attract the best and brightest top sales professionals. Quarterly incentives allow companies to review their performance and then determine the bonus payout. The focus of the company is solvency, and for the sales staff is motivation.
