We’ve mentioned this before, your commission plan should be cautiously determined and aligned with your overall organizational goals. And, these organizational goals should at the same time be aligned with the individual salesperson commission.
A commission plan comes with a strategic planning to make sure it perfectly aligns with short and long term goals. Furthermore, this commission plan should not interfere with overall organizational goals. Let’s remember that any decision in the sales team has consequences in the organization over the long term.
It is extremely important to match the goals for the sales team so you can prioritize targets accordingly. The sales commission plan is often considered the most powerful tool for a sales director, so many companies execute strategic business shifts through changes in the sales commission plan.
Having a commission plan that aligns with organizational goals will allow you to make this plan scalable. What does that mean? First of all, it is that point at which every member of your sales team is completely motivated to deliver the best results that will ultimately result in growth for the company. A scalable commission plan incentivizes optimal performance for every sales function.
A sales manager should have a very clear understanding of where does the team should go as well as its goal potential. That way, the sales director can establish and design a compensation plan that will help achieve those organizational goals.
Make sure your sales organization focuses on the right activities and objectives, otherwise, you could be facing disaster. Your company’s business model, organizational goals, and stage of growth should match with your commission plan strategy.
At the end of the day, it is all about coordinating the award of commissions correctly for the business impact. To help you in this process, there are tools like Blitz, a commission tracking software that will definitely power up your team to achieve all organizational goals.