How to Create an Amazing Sales Compensation Plan – Without Breaking the Bank

How to Create an Amazing Sales Compensation Plan

You know that for your company to succeed, you need more leads and more clients. As a result, you clearly want to help incentivize your sales team to do well, but maybe you don’t have a ton of money available. Fortunately, it is possible to create an amazing sales compensation plan without breaking the bank. All it takes is knowing what your sales folks really want and being creative with rewards.

Match Incentives to Overall Business Goals

Many sales compensation plans only reward the final close. However, qualified leads are also extremely valuable to your business. Just because someone isn’t ready to buy today doesn’t mean that your sales team member doesn’t deserve a reward. A highly qualified lead is partway through the buying cycle already, and with a little bit of nurture, he or she may easily become a sale. Consider having some rewards for salespeople who bring in qualified leads but haven’t closed the sale yet.

Find Out What Your Sales Team Really Wants

Interestingly, money isn’t always the motivator for every sales person. Money is engaging up to a certain point, but after that, it doesn’t really improve the quality of life. According to Forbes, money may make things worse and may not help drive specific results.

Helping your sales staff discover their intrinsic motivation is an important part of any sales compensation plan. You can use assessments like Kolbe A to measure a person’s instinctive mode of operation and combine it with Birkman to assess passions, motivations, behaviors and interest.

You can also focus on how they feel about their work itself. People enjoy feeling valued. Public, informal praise as well as promotions help with this. In addition, try to increase autonomy, relatedness and fairness. When you improve these factors in the workplace, people will be more motivated to create the great results you’re looking for.

Maintain a Competitive Pay Scale with Reward Tiers

While money isn’t everything, it certainly is something, especially when comparing your company to others in your industry and region. Be sure that you maintain a competitive pay scale that is similar to others in your industry. If you want to use financial rewards for performance without breaking the bank, structure your sales compensation plan to include tiered reward levels for increasing levels of performance. Not only will that help your sales employees aim higher, it will help those who may not be able to achieve maximum success still feel motivated to try.

Annual bonuses can be a nice touch as well, especially if you give them out just before the holiday season. Again, be sure that your sales compensation plan rewards the behavior you’re intending to produce – including bringing in qualified leads – and that achievers at every level feel recognized.

Creating a great sales compensation plan for your company doesn’t have to break the bank. When you align rewards with overall company goals, you ensure the results you reward are the ones that impact your company the most. By finding out what motivates your staff, you can save money and be more creative with awards. And finally, with a competitive tiered pay scale, you can reward all levels of achievement and give everyone something to work toward.

For more information about sales compensation plans, or for help creating your sales compensation plan, set up an appointment through my website. I can help you with a plan that will help your company excel in 2016 and beyond.