How The Right Sales Compensation Plan Can Supercharge Profits
- Topics:
- Incentives and Compensation
- Source:
- Article-Buzz
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Overview: If you let your salesman have his way, he will want a draw plus commission. Most will ask for a pretty stout draw and a relatively modest commission based on revenue sold. Don't agree to that! Draw plus commission lines the pockets of your salesman regardless of whether he is making you any money. The purpose of draw plus commission is to drive sales volume. Don't fall into the trap of thinking sales volume is important. You need your salesman to focus on PROFITABLE work. Let your competition sell the unprofitable work. That's work you don't want and you certainly don't want your own salesman bringing it to you. How do you get your salesman to chase profitable work? You align his pay to profit.
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Format: HTML | Date: Jan 2009 | Pages: 4
