From the course: Consulting Professional Weekly Tips

Unlock this course with a free trial

Join today to access over 22,600 courses taught by industry experts.

Compensating salespeople

Compensating salespeople

From the course: Consulting Professional Weekly Tips

Start my 1-month free trial Buy for my team

Compensating salespeople

“

- Ensure your sales compensation plan drives the behaviors you want. If you have a commission model based on the number of sales your people make, you're gonna get a lot of small sales. If you have a commission model based on total revenue dollars, you may get large sales but it may be very unprofitable work. If your compensation model is based on project profitability you'll have accounting and reporting arguments over what's included or not included in the project cost because that impacts the sales person's commission. Keep the compensation model simple, avoid exceptions at all cost. And know what behaviors you want to drive, one exception leads to another, leads to another, And when that exception is in the sales person's favor, they want the exception, when the exception wouldn't be in their favor, well then they want the contract rate. At my firm, our model is a sales person gets 20% of the revenue they generate. I do this because most of my instructors and sales people deliver…

Contents