Strategic consulting to create commission plans for sales teams
The hard part isn't calculating sales commissions, the hard part is defining the best type of commission based on the nature of your industry, product, and margin. Our consulting will help you figure out the best commission plan your sales force really needs, one that is truly useful and motivating, but also profitable and sustainable for your financial situation.
We start with strategy and end with tactics
We define the compensation strategy
We help you with the strategic decision-making process to implement a suitable commission plan for your company. We guide you through a series of steps where we define:
- Your industry and your product(s)
- The sales budget and profit margin
- The size of your sales force
- The experience level of your salespeople
Modeling, calculating, and predicting the ROI of the commission plan
At this stage, we analyze how different commission models impact your sales and financial results. You can see how a model affects the overall P&L (profit and loss) and the P&L of the product/brand.
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We decide the commission model
With the strategy defined and the ROI modeled, it is time to decide the commission model that best fits your needs. Here we help you choose the compensation plan model that best suits your company, your salespeople, and your goals. We assist you in making the best decision.
Book Demo
We launch and effectively communicate the new plan
Now, we allow your sales teams to visualize the compensation models, and we help you communicate changes or implementations effectively, thus helping to maintain motivation and commitment.
Book DemoComponents of the service
Our consulting service helps you create and implement commission and compensation strategies that motivate your sales team, reduce turnover, and maximize your revenue.
Strategic Commission Design
We create compensation plans tailored to your industry, considering product lines, roles, and sales goals to incentivize performance and retention.
Implementation and Training
We configure the plans in your systems (or in our Compensix software) and train your managers and salespeople for smooth adoption.
ROI Analysis and Optimization
We measure the impact of commissions on your sales and adjust the strategy to ensure optimal return on investment.
The 10 most common mistakes when creating sales commissions
These are the most common mistakes when creating commission plans for sales teams and that's why we exist!
Roberto Silva.
Global Compensation and Benefits Director.
By avoiding these 10 mistakes, companies can ensure that their commission plans are effective, fair, and motivating for their sales teams.
Unclear or Unrealistic Sales Goals
Sales goals should be specific, measurable, achievable, relevant, and time-bound (SMART). If goals are vague or too difficult to achieve, salespeople may feel unmotivated and less committed. Defining clear and realistic goals fosters a more strategic approach and improves sales team morale and performance.
Lack of Flexibility in the Commission Plan
Commission plans must be flexible enough to adapt to sudden market changes or shifts in company strategy. A rigid plan can prevent the company from responding effectively to these changes, resulting in lost opportunities or misalignment with current market conditions.
Complex Commission Structure
A complex structure can confuse salespeople, which can lead to misinterpretation of how they can maximize their income. Plans should be simple enough for all employees to understand easily, yet detailed enough to motivate high-performing employees.
Not Aligning Commissions with Company Objectives
If the incentives offered don't reflect the company's strategic objectives, salespeople may focus on goals that don't generate the greatest long-term benefit for the company. This can cause waste in resources and efforts that don't significantly contribute to the organization's overall success.
Ignoring Market Behavior and Competition
A commission plan must be competitive to attract and retain top talent. If a plan isn't competitive, it can result in a significant disadvantage, especially if the competition offers better incentives that attract the most capable salespeople.
Not Incorporating Sales Team Feedback
The sales team has first-hand perspective on how effective incentives are in the field. Not using their feedback can result in a plan that doesn't effectively address their needs or maximize their motivation and effectiveness.
Lack of Fairness in the Commission Plan
Fairness in commission plans is crucial to maintaining a positive and motivating work environment. If some salespeople feel the system is unfair, this can lead to resentment and conflicts, which deteriorates collaboration and reduces overall efficiency.
Outdated Commission Plan
Commission plans should be reviewed periodically to ensure they remain relevant and effective. A plan that isn't updated regularly can become ineffective, as it doesn't reflect changes in business strategy, market conditions, or employee needs.
Overloading Salespeople with Too Many Sales Goals
Having too many goals can overload salespeople, which can dilute their focus and reduce their ability to achieve any goal effectively. It's more practical to focus on a few key objectives that closely align with the company's strategic objectives.
Lack of Communication and Transparency with Commission Plans
Clear communication and transparency are essential for the effectiveness of any commission plan. Salespeople must fully understand how their commissions are calculated and how they can influence their earnings. Lack of transparency can lead to distrust and a decrease in motivation and commitment.
We are sales commission experts
We have written a book (over 300 pages) in which we teach how to create compensation plans for sales teams, with more than 30 Excel formulas and the help of 3 experts on the subject.
Fundamentals
In chapter 1 you will learn the fundamentals of compensation plans for sales teams.Design
In chapter 2 you will learn to design compensation plans that motivate your salespeople.Decisions
In chapter 3 you will learn to make the right decisions to choose and implement the appropriate compensation plan for your sales team.
Math and Calculations
In chapter 4 you will learn to make the necessary calculations to implement the compensation plan you designed.Excel Formulas
In chapter 5 you will learn to use more than 30 Excel formulas to automate sales commission calculations.Implementation
In chapter 6 you will learn to implement the compensation plan you designed and calculated in the previous chapters.Sales Managers
Written for sales managers looking to improve their team's productivity.
Sales Teams
Ideal for sales teams looking to improve their performance.
Human Resources
For HR professionals seeking to improve talent retention.
Finance
For finance professionals looking to improve their team's profitability.
Book Preface
This book is designed for business leaders, sales managers, and consultants who seek not only to attract top talent but also to inspire maximum performance through innovative and effective compensation strategies.
Throughout these pages, we will explore the various components that make up a successful compensation plan, including base salaries, commissions, bonuses, and other incentives that directly align the goals of the sales staff with those of the organization.
Additionally, you will learn to design compensation plans that motivate your salespeople to reach their goals and make informed decisions to choose and implement the appropriate compensation plan for your sales team.
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