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Add You - Sales Commission - What Return Should You Expect On Your Sales Compensation Investment?
Measure for Measure
Can you imagine playing hockey without a goal? Basketball without hoops and nets? Football without a goal line? Golfing without holes or greens?There may be leagues where it doesn’t matter whether anyone is keeping score, but not the big leagues. Champions of the Super Bowl, the Stanley Cup, the Masters can only be determined when there is someone keeping score.In hockey, keeping score means counting the number of times the puck gets into the net. In golf, keeping score means counting the number of strokes one takes over a defined course.Keeping score means identifying objectives and giving points to those who achieve them. Why is it tha
Once an account has been brought on board, can ANY salesperson manage the relationship, or is there something special about the relationship that exists between the current salesperson and the account?
I have seen cases where management held the opinion that ANYONE could manage and maintain the volumes of business that were being produced by major accounts. They questioned why they should continue paCan you imagine playing hockey without a goal? Basketball without hoops and nets? Football without a goal line? Golfing without holes or greens?There may be leagues where it doesn’t matter whether anyone is keeping score, but not the big leagues. Champions of the Super Bowl, the Stanley Cup, the Masters can only be determined when there is someone keeping score.In hockey, keeping score means counting the number of times the puck gets into the net. In golf, keeping score means counting the number of strokes one takes over a defined course.Keeping score means identifying objectives and giving points to those who achieve them. Why is it tha
Increase Your Salary With a Graduate Degree
Getting a graduate degree will almost guarantee that you will receive a salary increase. Often, you will also get a promotion to a more stable, higher ranking position within your organization. There are a few things to consider, though, before you make the leap.Consider the TimingTiming is everything when you're trying to get your graduate degree. Is now really the best time to get a graduate degree? Do you have time in the midst of your busy schedule to really go after the degree as you should or will school always be coming second to something else?A Free DegreeOften, people go back for a graduate degree almost solely because their co
This article answers the following questions:
Getting a graduate degree will almost guarantee that you will receive a salary increase. Often, you will also get a promotion to a more stable, higher ranking position within your organization. There are a few things to consider, though, before you make the leap.Consider the TimingTiming is everything when you're trying to get your graduate degree. Is now really the best time to get a graduate degree? Do you have time in the midst of your busy schedule to really go after the degree as you should or will school always be coming second to something else?A Free DegreeOften, people go back for a graduate degree almost solely because their co
- How do most companies look at return on investment (ROI) for their sales compensation expense?
- What portion of sales compensation expense do companies allocate to managing existing accounts versus pursuing new accounts?
- Do most companies expect their salespeople to generate new, additional gross profit each year that is equal to or greater than their compensation?
Here are some questions to consider as you determine the desired sales compensation ROI for your company, and how that ROI should be split between existing accounts and new accounts:
- What is the value of each sales dollar produced? Is the value different if a sales dollar is produced by an existing account versus a new account?
- How does the time and effort required to maintain (and grow) existing customers compare to the time and effort required to bring on new accounts?
- Do accounts operate pretty much on "autopilot" once they have been brought on board, or must your salespeople continue to invest significant effort (in terms of internal prospecting, opportunity qualification, proposal generation, relationship management, etc.) to maintain sales volume and profitability?
- Once an account has been brought on board, can ANY salesperson manage the relationship, or is there something special about the relationship that exists between the current salesperson and the account?
Leave the Profession Forever
When stress runs out of control it leads to burnout. No news that this is a workplace problem. Every increase in productivity comes about not by magic but by effort and intensity. The workforce pulls together, works hard, puts in long hours and concentrates. The standards are set high. Of course there is stress.What is news, however, is that stress can lead to the loss of the highest motivated workers, managers and executives. The assumption would be otherwise. One would think the highest motivated people, especially among the ranks of managers and executives, would be the ones with the most staying power. But stress allowed to run out of control always goes
ch year that is equal to or greater than their compensation?
One conclusion I have reached after working with many different kinds of companies is that there is little commonality in how they establish the desired return on investment (ROI) from their sales compensation investments. Every company's circumstances are different; as a result, what might constitute an acceptable ROI for one company will not be considered acceptable by another company.When stress runs out of control it leads to burnout. No news that this is a workplace problem. Every increase in productivity comes about not by magic but by effort and intensity. The workforce pulls together, works hard, puts in long hours and concentrates. The standards are set high. Of course there is stress.What is news, however, is that stress can lead to the loss of the highest motivated workers, managers and executives. The assumption would be otherwise. One would think the highest motivated people, especially among the ranks of managers and executives, would be the ones with the most staying power. But stress allowed to run out of control always goes
Here are some questions to consider as you determine the desired sales compensation ROI for your company, and how that ROI should be split between existing accounts and new accounts:
- What is the value of each sales dollar produced? Is the value different if a sales dollar is produced by an existing account versus a new account?
- How does the time and effort required to maintain (and grow) existing customers compare to the time and effort required to bring on new accounts?
- Do accounts operate pretty much on "autopilot" once they have been brought on board, or must your salespeople continue to invest significant effort (in terms of internal prospecting, opportunity qualification, proposal generation, relationship management, etc.) to maintain sales volume and profitability?
- Once an account has been brought on board, can ANY salesperson manage the relationship, or is there something special about the relationship that exists between the current salesperson and the account?
Work Styles - Mix And Match For The Most Effective Style
Jane and Bob have their team, and they are very happy with them. They understand each team member's work style, and now they can eliminate and minimize any negative impact caused by putting together people whose work styles are not complementary. In addition, Jane and Bob can actually use their understanding of work styles to create a more cohesive team.Let's find out what Jane and Bob already know.When Jane and Bob talk about work styles, they're referring to each team member's work style, how he or she gets work done, as well as leadership work styles, how leaders lead.Leadership work styles include <
other company.Jane and Bob have their team, and they are very happy with them. They understand each team member's work style, and now they can eliminate and minimize any negative impact caused by putting together people whose work styles are not complementary. In addition, Jane and Bob can actually use their understanding of work styles to create a more cohesive team.Let's find out what Jane and Bob already know.When Jane and Bob talk about work styles, they're referring to each team member's work style, how he or she gets work done, as well as leadership work styles, how leaders lead.Leadership work styles include <
Here are some questions to consider as you determine the desired sales compensation ROI for your company, and how that ROI should be split between existing accounts and new accounts:
- What is the value of each sales dollar produced? Is the value different if a sales dollar is produced by an existing account versus a new account?
- How does the time and effort required to maintain (and grow) existing customers compare to the time and effort required to bring on new accounts?
- Do accounts operate pretty much on "autopilot" once they have been brought on board, or must your salespeople continue to invest significant effort (in terms of internal prospecting, opportunity qualification, proposal generation, relationship management, etc.) to maintain sales volume and profitability?
- Once an account has been brought on board, can ANY salesperson manage the relationship, or is there something special about the relationship that exists between the current salesperson and the account?
Daily Life of a Search Engine Optimization Specialist
Have you ever considered an online career? The money is fast and easy. You don't have to work hard anymore and the cash just rolls in by the boat loads. Really life on the net is very simple. You simply find some program that will do all the work for you and the next thing you know success comes down the road for you. Actually all you have to do is jump on the next big thing that everyone is talking about, tell just a few people about it and get them to signup and before long you are rolling in the dough, right?If you believe this, I know a score of super marketers that would love to have your money! I tend to write articles based on first hand knowledge. I
n (and grow) existing customers compare to the time and effort required to bring on new accounts?Have you ever considered an online career? The money is fast and easy. You don't have to work hard anymore and the cash just rolls in by the boat loads. Really life on the net is very simple. You simply find some program that will do all the work for you and the next thing you know success comes down the road for you. Actually all you have to do is jump on the next big thing that everyone is talking about, tell just a few people about it and get them to signup and before long you are rolling in the dough, right?If you believe this, I know a score of super marketers that would love to have your money! I tend to write articles based on first hand knowledge. I
Use Recession To Grow Your Company
What is your firm’s first reaction to a recession? If you think that you should lie off the seemingly unnecessary staff, stop production, and institute a massive price cut, then think again. These, in fact, are ways to welcome the undesired recession in your business. Instead, consider gearing up and facing the tough times as if they are alternatively an opportunity to step up the success ladder and vanquish your competition. Bad times, if analyzed carefully, can be a tremendous opportunity for your business.A Time To ResearchRecession give you a much-sought time to research. Costs are dwindling and so are your expenses, so plan for the next stage. A
Once an account has been brought on board, can ANY salesperson manage the relationship, or is there something special about the relationship that exists between the current salesperson and the account?
I have seen cases where management held the opinion that ANYONE could manage and maintain the volumes of business that were being produced by major accounts. They questioned why they should continue paying high compensation to the salespeople who were managing those accounts.What is your firm’s first reaction to a recession? If you think that you should lie off the seemingly unnecessary staff, stop production, and institute a massive price cut, then think again. These, in fact, are ways to welcome the undesired recession in your business. Instead, consider gearing up and facing the tough times as if they are alternatively an opportunity to step up the success ladder and vanquish your competition. Bad times, if analyzed carefully, can be a tremendous opportunity for your business.A Time To ResearchRecession give you a much-sought time to research. Costs are dwindling and so are your expenses, so plan for the next stage. A
In some cases management chose to reduce commission rates, which caused the salespeople who had been managing the accounts to leave the company. In other cases management simply switched account assignments and assigned less "expensive" (in terms of compensation) salespeople to the major accounts. Far too often the outcome from either approach was a slow decay in revenue that eventually added up to millions of dollars in lost sales.
Why did this decay in revenue occur?
Close inspection identified two key reasons:
- The replaced salespeople had enjoyed truly special relationships with key players in the accounts. The key players' loyalty was to the salespeople, not the salespeople's employers. When the salespeople left, the key players saw little reason to continue to favor the salespeople's (previous) employers with their business.
- The replaced salespeople were extremely responsive and provided extraordinary levels of service. In some cases these salespeople were unusually successful in navigating their employers' informal networks. This enabled them to solve problems and do favors for their customers with a timeliness that other salespeople could not match.
- What level of market penetration has your company achieved to date?
- How much additional market penetration can your company reasonably expect to accomplish within a specified
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