Monday, May 04, 2015

For Those Always Asking About Sales Comp

There isn't a one size fits all for sales compensation. Sales comp is really about incentives to the sales force to sell the highest margin product or the new product or some other plan that the company has developed. It is rarely about "Go Sell Everything" because a comp plan like that leads to the sales reps learning how to: (1) work for themselves and not the company or the customers; (2) work less for more pay; (3) grumble or ignore about sales that are low compensation.

You have to also take into account: upsell, cross-sell, retention, contract recast and what happens if the account shrinks or closes.

6 Rules for Start-up Sales Comp

John Siefert is the president of Informa Exhibitions in the U.S, which owns Channel Partners. IN this 24 minute talk (must register), he talks about how cloud sales people differ from on-premise sales people. I would suggest that even circuit slingers are more like on-prem than cloud. Take a listen.

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