Incenting Inside Sales

Posted by Chad Albrecht on Thu, Jul 13, 2017

In decades past, a salesperson was a salesperson. The role was responsible for finding prospects, turning them into customers and selling on an ongoing basis as they manage accounts. But that model is on the decline as companies find it ineffective for large accounts and too expensive for small accounts.


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When Bad Incentives Happen to Good People

Posted by Jason Huhn on Fri, Oct 14, 2016


Many of us have heard about Wells Fargo’s phony account scandal by now in which the bank reportedly fired about 5,300 employees in its retail banking division over the past few years for creating more than two million fake accounts. These unauthorized ghost accounts were designed to inflate sales credit for Wells Fargo employees, helping them exceed quotas and earn more incentive dollars. It’s estimated that the fraudulent accounts generated about $2.6 million in fees at the expense of the bank’s customers, which the bank has agreed to repay.  


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Rethinking Your Incentive Plan When the Rules of the Game Change

Posted by Brian Keating on Tue, May 03, 2016

Companies in several industries are redesigning compensation plans due to regulatory intervention. Financial services firms, for example, are reacting to the April 6 U.S. Department of Labor (DOL) ruling that requires advisers working with investments that are governed by the Employee Retirement Income Security Act (think 401Ks and IRAs) to act as fiduciaries and put their customers’ best interests before their own. Even if advisers were already behaving in that manner, the ruling calls into question some of the commission-based incentive practices that are common in the industry.


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Is Your Comp Plan Experiencing ‘Role-Creep’?

Posted by Chad Albrecht on Mon, Apr 11, 2016

I’ve started to get more and more questions about whether roles that are on the “fringe” of selling should be on a sales incentive plan. This could include roles like sales assistants, sales operations roles and even marketing roles. This is almost surely due to the strong economy and salespeople receiving payouts well above what they were a few years ago. Those who see it firsthand but don’t actually participate in the sales incentive plan want a piece of the action, too.


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Two Questions You Should Be Asking Your Sales Force About Their Goals

Posted by Mike Martin on Fri, Jun 05, 2015

As summer kicks off, I can’t help but look ahead to the early fall sales compensation plan design season. I am in no rush to get there, but thinking ahead does nicely remind us that now is the time to collect feedback from the sales force on the current incentive program and goals. Over time, I have found that getting answers to just two questions can provide a wealth of feedback into what should be refined, added or removed from the goal-setting process.


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