Risk vs. Reward

Posted by Mike Martin on Tue, Oct 06, 2015

Payout ranges for a team of managers came up during a recent discussion of mine with a sales compensation director who oversees the compensation plans for about 5,000 sales reps. The idea of risk versus reward arose, as it always does. Most of the time, however, risk versus reward is focused on the top performers versus the bottom performers:


>
Read More

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.


>
Read More

Should You Pay Your Salespeople on Profit?

Posted by Chad Albrecht on Mon, May 18, 2015

In a recent webinar on sales compensation, we polled the audience, asking about the biggest issues facing sales compensation professionals today. Out of several hundred responses, consideration of moving the sales force away from revenue toward paying on profit was one of the top issues faced by more than four in 10 participants. In this post, we will help you think through whether you should consider shifting the metric in your incentive plan to pay on profit.


>
Read More

Can Sales Compensation Design Benefit From Crowdsourcing?

Posted by Mike Martin on Thu, May 07, 2015

Crowdsourcing is a technique whereby an organization publicizes a problem to the general public and solicits solution ideas, with a prize sometimes going to the best submission. Nonprofit and for-profit companies have crowdsourced for challenges such as the XPrize, which holds global challenges in categories like technology or life sciences and gives multimillion-dollar awards. Or the cultural statistics Web site FiveThirtyEight recently used crowdsourcing to solicit ideas for improving the NBA draft process.


>
Read More

Three Ways to Ensure Reps Understand Their Sales Compensation Plan

Posted by Mike Martin on Tue, Apr 21, 2015

Over time, I have run into a few litmus tests that companies use to gauge the simplicity of their sales compensation plan communications:


>
Read More