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Which is why you have sales guys close the deals, and have a sales executive who is compensated based on the performance of the company to approve them and set
by exelius 12y ago
Which is why you have sales guys close the deals, and have a sales executive who is compensated based on the performance of the company to approve them and set the comp model for the sales team.
Your variable comp model can't be just a straight % commission, or else your sales reps will go chase enormous contracts that may be bad for your company. If you want to target smaller deals, weight their comp more on number of deals closed. There are hundreds of metrics you can use to judge your sales staff, and getting it right is hard. Your sales strategy needs to be driven by your business strategy, which should decided upon at the highest levels of the organization.
There is an art to creating variable comp models. You need your metrics to line up with your strategy. A star will deliver the numbers no matter what they are; while a low performer won't. The model is proven, but the details are up to every company.