Long hours. Difficult quotas. Pressure from above. If any of this sounds familiar, you’re not alone. For many salespeople, the challenges are all too real. But there is hope! With a little bit of creativity and out-of-the-box thinking, you can design a compensation plan that will keep your representatives happy, engaged, and selling. Mark Stiffler of Optymyze shares eleven ways to do just that.
1. Offer Accelerators/Decelerators
One way to incentivize your sales team is to offer accelerators or additional bonuses for exceeding quota. This can be a great way to keep them motivated and to sell at their highest level. However, it’s essential to make sure that the accelerators are attainable and not so high that they’re unattainable. You don’t want to set your team up for disappointment.
2. Use a Compensation Matrix
Another way to fairly compensate your sales team is to use a compensation matrix. This tool allows you to compare each salesperson’s performance against specific criteria. This can help you identify top performers and ensure that everyone is fairly compensated.
3. Offer Incentives for New Customers
If you’re looking to grow your customer base, offer incentives for your sales team to bring in new business. This can be a great way to increase sales and build long-term relationships with new customers.
4. Offer Spiffs for Attaining Goals
A spiff is a one-time bonus that’s typically given to salespeople for meeting specific goals. This can be a great way to motivate your team and keep them selling at a high level. However, it’s essential to make sure that the goals are realistic and attainable. You don’t want to set your team up for disappointment.
5. Provide Training and Development Opportunities
Investing in your sales team’s development is a great way to show that you’re committed to their success. You can help them hone their skills and become more effective salespeople by offering training and development opportunities. This investment will pay off in the long run as they close more deals and bring in more business.
6. Offer Commission Advances
If you want to motivate your sales team, offer them commission advances. This allows them to receive a portion of their commission upfront, which can be a great incentive to keep selling. However, it’s essential to make sure that the advance is reasonable and that they can still meet their quota. You don’t want to put too much pressure on them or set them up for failure.
7. Payout Bonuses Monthly
Many companies choose to pay bonuses quarterly or annually. However, consider paying monthly dividends if you want to motivate your sales team. This will give them something to strive for each month and keep them selling at a high level.
8. Offer Non-Cash Incentives
If you’re looking for ways to motivate your sales team without breaking the bank, consider offering non-cash incentives. This can be anything from gift cards to paid time off. The key is to find something that will appeal to your team and incentive them to sell.
9. Use a Sales Contest
Sales contests are a great way to motivate your team and get them to sell at a high level. Offering prizes to top performers can create a sense of competition and keep everyone focused on meeting their quota. However, it’s important to make sure that the contest is fair and that everyone has a chance to win. You don’t want to create a situation where only the top performers are rewarded.
10. Offer Flexibility in Compensation
If you want to attract and retain top talent, offer flexibility in compensation. This can be anything from allowing employees to choose how they’re paid (commission vs. salary) to providing equity in the company. The key is to find something that will appeal to your team and help you attract and retain the best talent.
11. Make Time for Training and Development
Common challenge managers face is finding the time to train and develop their employees. With the demands of daily operations, it can be challenging to set aside time for learning. However, investing in training and development is essential to ensure that employees have the skills they need to succeed.
Outside sales compensation can be a great way to incentivize your employees and increase profits for your business. However, it’s important to keep the following things in mind in order to avoid problems down the road: clarity, transparency, visibility, advanced notice of changes, and employee feedback. Following Mark Stiffler’s tips, ensure that your outside sales compensation plan is fair and effective for all parties involved!