From the course: Sales Management Foundations
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Understanding sales compensation
From the course: Sales Management Foundations
Understanding sales compensation
- To create and manage an effective sales force, you must compensate your reps. The good news is that sales managers have a variety of sales compensation schemes to use. The key is to select one that is market-competitive and that drives the right behaviors in your sales reps. Compensation can affect the number of sales calls a rep makes, the quality of that sales call, and how much time a rep devotes to the job. It all depends, once again, on the sales task. Who do we call on? What products do we sell? What activities lead to success? And what interactions do reps have with others in the company? In other words, compensation can drive behavior in all four areas of the sales task. Now, creating a sales comp program takes a lot of work, so it's important to get help from others within your company. such as your finance and human resource departments. A good sales comp program is simple, fair, flexible, affordable…
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