Sales Compensation Blog

I have read thousands of sales compensation plan documents over the years. Some I can understand but others take even a comp expert a lot of time to figure out. This is the time of year when many new compensation plans are announced to the sales force. In this economy, lots of companies are changing their comp strategy and no company can afford the lost opportunities that can happen when a sales plan is not clear.

When reviewing your plan documentation answer these questions clearly and you'll go a long way in communicating your plan changes!

1. Can the rep see how much they can earn at target?

• The rep wants to quickly look at the plan document and figure out what he can earn when he achieves his goals.

2. Does your plan document clearly communicate the goals?

• Goals must be clear and precise. The rep needs to know where she should be focusing her attention.

3. Does your plan document clearly communicate the earnings?

• If you have designed your plan correctly, the reps greatest earning capability will be on the area you want them to focus. Let them know where that is.

4. Do the reps get excited about the upside possibilities?

• Let the reps see how much they can make at excellence, it goes a long way towards overachievement.

	By using Makana Motivator, you are quickly able to create plan documents that will help focus your sales reps on the right behavior. Goals and earning capabilities are clearly stated.
By using the mini modeling function of Makana Motivator, you will be able to interactively show the rep how much they will earn at various levels of attainment and compare it to what they made on the previous plan. As you review the plan with the rep and change your attainment assumptions, Motivator will calculate the appropriate payout based on the plan you created.