What sales incentives programs do you use? Do they work for your team?

Hi Margeret,

I've used both cash and non cash (travel, restaurant vouchers etc) for both annual and specific (Project based) incentives wih varying degrees of success.

Regardless of the carrot you choose, the "stick" needs to drive Win: Win:Win outcomes. ie: The business needs to more profitable, net after bonuses, the rep needs to have succeeded professionally and personally and the client needs to have had a positive experience that ensures repreat business as a result of your reward to the rep(s).

The very best reps in certain industries want very low base salaries and uncappd bonuses which works very well for all stakeholders, yet in others, I would prefer to pay very well and give a modest bonus based on group success to avert leakage of reps to competitors when the market slows and bonuses dry up. These are the long sales cycle, low volume markets typically.

The real answer for your business is not clear cut unfortunately, it depends on the capability and leadership skills of the Sales Exec, the reps themselves, the businesses strategy & the type of products, services and the markets you service.

Why not engage your reps and workshop the concepts, but only after you have a clear set of business expectations and measurable outcomes the bonuses are linked to,

Good Luck, Steve

Mary as one who sells incentive programs and most recently to a major pool parts manufacturer for its 2500 dealers, programs do work. They just have to be the right program and have good incentives, and not cash.

Studies show merchandise based rewards give a 6 to 1 ROI versus cash. There are many other factors but yes they do work.

I agree with Mark in that the outcome of such program needs to benefit the company. Secondly, it can provide its employees with a perk after working towards a goal.

I enjoy the travel programs because both the company and employee can share the benefit. As an employee, who doesn't enjoy a paid vacation? If the employee is already performing, they deserve the vacation. Others will see the incentive to increase their performance if they see the value in the vacation.

As a company, you can set up a program which pays for itself. Say if you are in sales and have a quota to meet, you can increase the quota $X and put the profits towards the vacation. Break even, boom.

Furthermore, I have worked for companies that had a 5 or 7 day retreat. 90% of that was personal time with a few meetings which were usually enjoyable. The company can use these meetings to motivate members, share success stories (proven tactics), or introduce new techniques/designs/whathaveyou.

All this talk makes me want to plan a vacation right now.. unfortunately, this will be out of pocket. And I realize I got a little off topic- I felt it was relevant so I didn't retype another response.

Jacob
Sales Commission Software
http://www.oneclickcommissions.com/focus.htm

I think that if you create a good incentive program, it can work well. Make sure you can correctly track the progress of different members, and make sure that it's measuring sales that your team is making, not repeated sales or sales that they don't control.

If you can make a fair, accurate program, it will definitely increase sales.