Compensating the Sales Force: A Practical Guide to Designing by David J. Cichelli

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By David J. Cichelli

Compensating the revenues strength is a uniquely jargon-free, how-to consultant to all significant revenues repayment innovations and formulation. utilizing real-world examples, guru David J. Cichelli: is helping readers opt for the precise reimbursement technique for his or her company presents step by step tips to enforcing numerous ways Simplifies the mathematical formulation which are a thorn in such a lot manager's part

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Extra resources for Compensating the Sales Force: A Practical Guide to Designing Winning Sales Compensation Plans

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Sales Compensation Program Ownership Although the sales compensation program must serve many (and often competing) objectives, it is still a sales management program. It is part of an array of management tools used by the sales department to manage sales productivity. We suggest that the sales department act as the steward of the sales compensation program. But others, such as the CEO/general manager, marketing, finance, and human resources, must have access to the design, management, and administration of the sales compensation program.

Do not confuse leverage as a pay cap. The leverage amount provides an upside earnings estimate for the best performers. For definition purposes, we define best performers as the 90th percentile of performance among all job incumbents. In other words, the best performers receive three times the target incentive for outstanding sales performance, defined as the 90th percentile of sales personnel for that job. TLFeBOOK Sales Compensation Fundamentals 100/0 70/30 50/50 Base Pay Base Pay Base Pay 25 0/100 Target Total Compensation Pay Mix Figure 2-6.

Preferred Solution: The basic assumptions about the incentive plan TLFeBOOK 30 Chapter Two were negated when the price of the product collapsed. Terminate the old plan and redesign a new plan to match the company’s new market dynamics. Sample Quota Distribution Policy: The summation of all quota assignments should equal the company budget forecast. Quota distribution targets two-thirds of all sales personnel for a job to reach and exceed quota, and one-third not to reach quota. Your Quota Distribution Policy: Performance Range Performance range specifies the low and high spread of performance for payment purposes.

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