SETTING UP A SALES COMPENSATION PLAN

Sales compensation can be a tricky affair to master. Any plan should answer these basic questions:
  • What's your overall goal?
  • What is working and not working about the current plan?
  • What do you need to eliminate or improve and what should you exploit further?
  • Who is involved in designing the plan? Who can impact the plan and how will they be treated?
  • What math will you use to establish a base salary, commission, bonus, any caps on income, frequency requirements, etc. – a percentage of what, when, how, where, etc.?
  • How can you test the plan before you roll it out?
  • Where can the plan be manipulated or even sabotaged?
  • How does your plan compare to that of the competition?
  • Who can review or provide a second look at your plan?
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Further Reading
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