HubSpot’s guide to sales compensation
One of the best ways to grow your business quickly is by compensating salespeople effectively. According to Inc., a sales compensation plan is a way to put your marketing strategy into operation.
HubSpot has published a guide to sales compensation to help marketers devise effective sales compensation plans.
On keeping sales comp plans effective, Aja Frost says, “The more variables you introduce to a sales comp plan, the likelier you are to unintentionally promote competing behaviors. You also make it harder for your reps to understand how they’ll be paid — meaning they’re less inclined to go in the direction you’re intending.
With that in mind, use two to three variables. Grasping the fixed, variable, and/or base percentages should be easy. Not sure if your plan fits the bill? Time yourself explaining the plan to a salesperson (or the mirror). If it takes more than one minute, you probably need to simplify.
And don’t worry that cutting out one of your terms will make it harder to hit a specific goal. Sales contests and SPIFs are a great way to drive short-term behavior changes and can be added to the mix at any time. And next year, when your priorities have probably changed, you can create a new sales comp plan”.
Comments are closed.
