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Sales Compensation

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May 24, 2012

John Carroll and 8 other people answered this question

Should you compensate sales reps differently for new business vs renewals?

It depends, Lori. The key is to structure the compensation model to balance opportunity and risk at the business level, and recognize and reward the appropriate behaviors to produce the desired results. The primary drivers of sales compensation should be new business growth and customer ... more

Sales Compensation

Sales Management

May 23, 2012

Jerry Hegarty and 1 other person answered this question

What do you recommend for "accelerators" in sales compensation plans?

Craig,
The answer to your question is yes, rates tend to increase as performance increases and these higher rates are often referred to as accelerators or 'kickers'. Modeling what those rates should be takes some analytic work though because there are potentially big numbers involved. ... more

Sales Accelerators

Sales Compensation

May 23, 2012

Jerry Hegarty and 1 other person answered this question

What is the Commission % as part of total sales comp?

Nick,
I am a new user here on Focus, but found your question one that I tend to hear quite a bit. As a general rule, we tend to see plans in the technology/software space that vary greatly but tend to cluster in the 60/40 ... more

Sales Compensation

April 18, 2012

Michael Janas and 3 other people answered this question

Are sales commissions included in payroll taxes?

Yes, commissions always taxable income. But where the 40% came from, you need to ask your boss. Also, review your tax documents for withholding categories. But definitely see your boss (or the Payroll dept). more

March 20, 2012

Bob Gately and 1 other person answered this question

Why do sales people often need external tangible motivation such as variable-pay to reach their goals?

When I ask sales managers if 20% of their salespeople bring in 80% their sales revenue some laugh and say it is, "more like 10% bring in 90%." In any case the top performers are very valuable. The reason why the 80/20 rule is so ... more

Aug. 10, 2011

pradeep Raj and 3 other people answered this question

Do you have ways to incentivize the sales teams present day actions that lead to future successes?

Thanks for the inputs Dave.

July 25, 2011

Margarita Roberts and 13 other people answered this question

Sales Compensation Best Practices: What are your 3 tips for developing a sales compensation plan?

Three Major Points I would recommend would be:
1. Make sure to keep your sales management and sales commission separate.
2. Make sure the plans work for the long-term plans of the company
3. Make sure employees are still taking care of the customers
In my experience, ... more

June 9, 2011

Brian Jeffrey and 2 other people answered this question

Sales Compensation Plans: What percentage of a sales person's total pay should be base versus bonus?

I believe that the complete compensation package should not exceed 20% of the gross margin. A bonus should be no more than 10% of the total compensation (or about 2% of GM). more

June 9, 2011

Bill Binch answered this question

Sales Compensation Best Practices: What is your opinion of "consistency" bonuses?

Craig
We're believers at Marketo of consistency bonuses. Most sales manager I've met prefer a rep who consistently performs versus one who has high high's and low low's; a consistency bonus can help drive that behavior. And behavior is the correct focus -- any bonus should ... more

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