Compensating sales force

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Compensating sales force

While there are many types of goals — from units sold to gross margin — it can be difficult to choose the right one for your business. Multiple goals may help focus salespeople.

Too many metrics may confuse the sales force and dilute the business strategy. Too few may create financial instability for your employees and business especially during tough economic times.

Sales Revenue One of the most frequently used goals, sales revenue is the income received from the sale of products or services by a salesperson. It is usually straightforward to measure and easy for the sales force to understand.

Sales Commissions - advantage, percentage, disadvantages, Basic compensation plans for salespeople

The difficulty is in setting the goal. However, according to sales management experts Andris A. Zoltners, Prabhakant Sinha and Sally E. Profit calculations are often too complex for the sales force to understand and salespeople may feel like they have less control over profitability than revenue.

Compensating sales force

New Business Setting new business targets can be an effective way to focus the sales force on growth. This can be especially true for mature businesses that experience stalled or declining sales. These goals can be based on revenue from new customers or new revenue from existing customers. For example, the latter might include targets for selling new products, services or markets to existing customers.

Compensating sales force

Growth Another way to focus the sales team on growing the business is to create a target based on growth over the previous year. This can be a percentage or a total dollar value.

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Team Performance Many sales performance goals are relatively short term and individual based. However, according to Andris A.

As such, the authors suggest minimizing self-serving incentives. Instead, set department or team goals for revenue, units sold or customer service. She has been writing sincecovering adventure, travel and business topics.The sales commission is a method of compensating salespeople for the services they provide to their employer.

Under so-called "straight" commission arrangements, the salesperson receives a previously agreed-upon percentage of the revenue brought in by a sale that he or she makes. Executive summary. Today, enterprise criminals of every sort, from drug traffickers to stock fraudsters to corporate embezzlers and commodity smugglers, must launder the money flowing from their crimes for two reasons.

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