Sales Compensation

I have received numerous emails and calls about the beloved topic of sales compensation ! So let's talk a little bit about that sensitive subject.

Depending upon your industry, your organization, your status, and the various traditional ways of compensating sales pros in general; there are likely to be some changes for you and / or your company. Why ? As most marketing graduates know the sales department is usually a sliver of the total marketing budget for any company. In certain organizations that sliver has grown larger over the years and in this type of economy, management is checking all areas to diminish expenses. This is especially true in service organizations where the "sales" portion of the marketing budget is much larger due to the "sales professional" being the primary force for getting and sustaining business relationships. And on top of the economic concerns, now comes the increasing value of the internet and other means of promoting business opportunities. Increased competition and new technology to market your product or services is provoking new "looks" at the marketing dollars.

Bottom-line, how much is a successful sales professional worth in today's marketplace ? Better yet - when you define successful - how much are they worth to your company ? How do you attract them and retain them ? Do you let them nest in recurring sales ? Do you turn tenured accounts over to salaried account managers or customer service whizkids ? This is a real issue for small and mid-sized business organizations. Small and medium companies are prone to commission sales and a draw against commissions as the ideal way to build a sales force ( after initial training and acclimation ). The problem is that the sales professionals are left to their own direction and generally speaking accountability is lacking. Sales management ( I like coaching ) can be virtually non-existent because the sales manager is also responsible for his own accounts and doesn't have the time, or training that it takes to be a good sales coach.
What to do ? Obviously there is no simple answer. But get ready, it will likely be discussed soon.

Most of the corporate giants have already dealt with this issue - some not. A lot of organizations utilize some form of salary plus to compensate key salespeople. And a large percentage base the incentives on establishing new customers not account management. They have also learned that the professional sales coach with a full time responsibility is a worthwhile expense.

Whatever you do - don't forget ! "people still buy people"

Remember - "The Biggest Obstacle to Sales Success is the Resistance to Change How You Sold Yesterday in Order to Be More Successful Today "