Sales incentive program outline

Thanks jacco. May I please have a copy of the spreadsheet? I also would love a hard copy of the article. I just get tired of reading off the screen.

I could not see how to print if there is an option. Kind Regards, Ellen. Thanks for this awesome breakdown! Thank you in advance for me to receive a copy of the Account Executive compensation plan spreadsheet. Hi, I am building my teams sales comp right now, thanks for providing this information. May I have a copy of the spreadsheet? Great info. May I get a copy of the table 11 and table 12 spreadsheets.. Already joined? Forgot your password?

Reset it. Don't have an account? Sign up here. Full Channel List. Sales Templates Sales Training Demo-litions. Code of Conduct. Log in. Join Now. Sign In. All Channels. What is a Sales Compensation Plan? Keep it Simple. A summary of your compensation plan must fit on a single page. Think Short. Keep the time between activity and compensation under 60 days. Be Fair for Everyone. All compensation must be fair and equal to everyone.

Make it Easy. It should be easy to measure, easy to administer. Step 2: Establish Role Levels Establishing your role levels can become a complicated process. An overview of three titles With these three role levels, you can easily define the differences between un-tested, new employees and those with experience. Be aware, OTE will vary depending on your geography and possibly your industry.

It ties payment to the achievement of specific objectives that have been: pre-determined shared on the incentive plan clearly communicated to the employees Step 4: Decide Base Pay and Sales Commission Structure The goal of variable pay is to develop a performance-driven culture in which your sales team is financially accountable for results. But beware… This can create a lot of issues.

Here are some highly leveraged and low-leverage compensation plans, and the situations where they might apply: Table 3. An overview of leverages commonly used OTE and the breakout between base pay and sales commission can change depending on your location.

Here are a few other variables that can affect pay: Table 4. Variables impacting sales compensation plans Just to paint a picture for you, look at the range of salaries for an AE as of Mid Atlanta-based AE.

Step 5: Set Targets How you set targets depends on your specific business model. When should you pay sales commission? Should you pay commission on booking or cash collection? This is a touchy subject because a booked client does not guarantee cash collection.

If you want to use this method, here are some baseline thoughts to think through: Compensation against bookings accelerates deals and is used during growth. Or, you can simply adjust quota upwards to account for an expected level of premature churn.

Non-Recoverable Draw A guaranteed payment which gets subtracted if the rep hits their commission targets. Recoverable Draw Effectively a loan against commission over a number of months. Table 6. Impact of recoverable vs. Earning the Draw Here are a few ideas to motivate your new employee to earn the non-recoverable draw: Table 7.

Monthly vs. Quarterly Commission Payments The evidence is clear: monthly payments reduce the hockey-stick effect when a disproportionate amount of revenue closes at the end of the quarter. The norm is 1 payment cycle after the quarter closes, e. Capping Compensation This protects the upside. Fair Compensation For good reason, sales compensation receives a high level of scrutiny.

But in practice, performance typically beats equality, which can be a problem. Overview Of the Payee Sales Compensation Plan All commissions will be calculated and paid once every month, for the preceding month. Travel and Lodging Auto travel: Reimbursed at the current federal reimbursement rate Cell phone: Sales Reps will be required to maintain a cell phone as part of conducting sales business.

Reimbursable with receipts Draw — Payee receives a monthly un-recoverable draw against the sales incentive plan as follows based on the participation and completion of the 90 Day Onboarding Program. Eligible Draw Month-over-Month Clawback — In order to receive your full commission with no clawback, the customer must stay live for 3-months from the day we start billing the customer. If a customer cancels short of the 3-month mark you will have a prorated amount clawed back from your commission against the sales made.

Draw Clawback — If payee voluntarily leaves the position within the first 6 months of this plan, the Draw payment s will be due back to the Company through a payroll deduction from any monies owed to Payee. Splits — Commissions can be split with other Payees, on a deal-by-deal basis at the discretion of the VP of Sales.

Termination of Employment — On voluntary or involuntary termination of Payee employment with the Company, commissions will be paid on transactions dated prior to the termination date only. Any amounts owed to the Payee will be according to employment regulations after withholding taxes and other dues.

Payee shall not engage in any other employment during the term of this agreement. Payee shall use the most ethical practices while engaging in any sales activity. Payee agrees to protect all confidential material including prospect data, sales data, and client information belonging to the Company and shall take all reasonable care in making sure that such confidential material is not disbursed to anyone outside the company.

In this article, we discuss what a sales incentive is, several advantages to using incentive programs and 30 ideas that you can use to brainstorm the perfect sales incentive for your team. A sales incentive is a reward that employers offer to their sales professionals for successfully selling a specific amount of products or service hours. Sales incentives can be monetary, or they can be physical rewards, experience-based rewards or another type of incentive geared toward employee interests and motivations.

Sales incentives differ from sales compensation because compensation usually comes as a commission, which is typical for sales professionals to earn on top of their regular salary. Sales incentives instead are rewards meant to provide recognition for exceeding expectations, meeting objectives and adding to the overall success of an organization.

Generally speaking, many companies integrate sales incentives as regular reward programs when sales professionals meet specific sales objectives such as selling a certain number of products or meeting a certain amount in sales revenue. Additionally, businesses will use sales incentive plans to motivate and engage employees, resulting in higher productivity and effort to successfully meet their objectives.

Aside from monetary compensation, there are a variety of different offerings you can include in a sales incentive plan. From team outings to personal days off, consider the following examples of great sales incentive ideas:.

An outdoor activity or special entertainment event can be a great incentive. The following ideas provide ways for your team to get outside and engage in something they enjoy:. Outdoor excursions, such as a boating trip or a camping trip.

Physical rewards are another excellent incentive, especially if the reward is something that your team can use every day. Consider items that improve their workflow or personal items that they can enjoy at home:. Technology gadgets like earbuds, tablets, watches or other tech accessories. Office equipment like standing desks or new monitors. Professional development and continuous learning are equally important motivators.

For instance, offering your team the chance to participate in a course or development seminar gives them the opportunity to develop new skills and work together to improve sales outcomes for the company and themselves. The following ideas are great incentive perks to consider in a sales incentive plan:.

Monetary rewards are still an effective sales incentive. A great way to incorporate monetary rewards is to provide an equal reward for the whole team, that way all team members receive recognition. Here are a few monetary incentive ideas:. Exploration and experience are excellent sales incentive ideas because they provide employees the opportunity to create memories and enjoy meaningful activities. For others, I would say it is time to get your division in order.

We feel this is the best way to reward individual managers for their performance and profitability of their division. Under the old system, division managers either profited or were hurt by being judged as a part of overall company performance. Per our discussion on Monday the following will be your sales commission plan for the third and fourth quarters of this year. Your draw is paid on the 1st of each month. Commissions are paid on the 15th of the following month for the previous month.

For example, if net sales increase by Quarterly bonuses will be paid on 15th of the month following the quarter. If you have any questions please let me know. This plan is effective Tuesday, August 1. Starting on Monday each associate will be paid 5 percent of all completed sales between the hours of a.