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Compensating salespeople

Compensating salespeople: Consulting Professional Weekly Tips
Compensating salespeople: Consulting Professional Weekly Tips

Ensure your sales compensation plan drives the behaviors you want. A commission model based on the number of sales made gets you a lot of small sales. If it's based on revenue dollars, you get larger sales but possibly unprofitable work. If it's based on projected profit, you'll have accounting and reporting arguments over what's included in project costs. Keep the compensation model simple, avoid exceptions at all costs, and know what behaviors you want to drive as they sell.

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