Any company which requires its teams to sell for them, simply has to have a great sales comp plan in place. This is something which the brillianthas been blogging about recently and his piece is something should that every company should pay attention to.
Josh has laid out a very clear and simple plan for how these commission systems should be setup, and where so many companies get it wrong. Any business which does deal in sales simply has to pay attention to what Josh has to say regarding the setting up of a sales comp plan, and when it is done well, here is what the company can expect in return.
Higher Amount of Sales
At the heart of this plan is of course the chance for the business to bring in more sales, which therefore means a larger amount of revenue and of profit. As basic as this may sound, it is something which so many companies miss the point of. Another key point to make here is that it is not just the implantation of a plan which is important, but implementing a system which works for both the business and for the employee. This is why what Josh has described is so perfect, because he covers all bases for setting up such a plan, keeping in mind all affected by it.
This is not just about the business of course, it is also about making sure that the staff are driven, incentivized and happy. This is a very critical aspect of running any business and if your staff know that they can make more money when they work hard and sell harder, they will be far happier when they see that money coming in. We all want staff who are happy because this increases productivity and makes them much more driven. The fact that the business makes more money in return is of course a wonderful bonus.
Consider having staff who are unhappy, they will eventually seek a better position elsewhere and this is going to cost your business money when they have to recruit again. This is something which can be so easily avoided, and a sales comp plan is critical to this. Making money is great but companies also have to focus on where they can avoid spending money unnecessarily. Recruiting new staff after investing in training is not a smart move, a sales comp plan ensures that this doesn’t happen.
And finally we cannot ignore the fact that if the best selling staff are able to make more money than others, the rest will be driven to get better and to earn more. Healthy competition within the workplace is a great thing, and this again is just what this sort of plan will help to create.
Make sure that you read the article which Josh has written, ini order to ensure that you have created the perfect sales comp plan for your staff.