Which variable in your compensation package incentivizes your sales force to deliver the results desired - more clients, higher revenues and gross profits? The consensus from sales teams globally is that it varies based on whether the salesman must find new customers or delight existing customers or both. Since it takes at least six times more effort and expense to attract new business than it does to sell to your existing customers, the risk reward relationship favors compensation with a higher commission rate when they must seek new customers. Here the commission rate range may vary between 50 to 70%. For those sales consummated with existing customers, the salary percentage goes up and the commission rates goes down. The salary rate may vary between 50 to 70%.
Of course this is only part of the sales compensation formula with further blogs coming. If you're seeking to make your sales team perform better then let's have a discussion. This is what ActionCOACH - Business Coaches do - accelerate your growth.
Call me at ph: 972 709 6776 or email: StephenMarino@ActionCOACH.com
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