Mergers and acquisitions are a great strategy for boosting the growth of a business. However, they also involve some risk. For one, the process can be complex and demanding. Additionally, such changes don’t sit comfortably with most workers. This is why the business may risk losing some of its top performers. There is also the issue of sales compensation – how do you handle your new team now that two sales forces are coming together?
One of the boldest moves an employee can make in the job market today is working without knowing how much they will get paid at the end of the month. This occurs when the pay is solely based on commissions. While such a job isn’t for the faint-hearted, it’s arguably one of the most rewarding sales positions one can ever get. Here are the reasons why:
If you’re in the manufacturing or distribution sector, you may be aware of rebates. These are price reduction incentives that sellers give to their clients in order to drive desired customer behaviors and boost profitability. They intend to encourage customer retention, boost profitability and improve sales of certain products. Sales rebates can be broadly classified into two types:
The main objective of Sales Performance Management (SPM) is to have most of your sales people hit their quota more often. SPM uses various tools to keep a Salesforce motivated and focused on their quotas while working within their territories. Some of the key aspects that characterize a good SPM strategy include incentives and commissions, training and coaching, on-boarding, sales quotas and territories, and sales data analytics.
For a business that has various divisions or incorporates direct sales and partnership channels, preparing a compensation plan that rewards all those involved in bringing a sale can be a complex task. The business risks issues like overlapping commissions, overpayments, and sales conflicts. However, you can ease the problem by having a good compensation management system. Here are some tips you can use to account for the different sources of sales turnover and make sure you deliver fair compensation to your staff.