Are you Reaching Your Income Goals? All too often Sales professionals are given a comp plan and never really sit down to review their business against what they are being asked to do and how they are being paid. Instead, they accept a number (in many cases arbitrarily arrived at by someone else) and simply begin to chase iy down. One of the things we do with our private sales coaching clients is working through their comp plans along with their business plans to make sure they are acting in their own best interests to maximize it.
Reaching Your Income Goals – Understanding Your Comp PLan
This compensation planning is about reaching your income goals. Not what the company wants you to sell (assuming you are handed a number from the company), but how you get paid, how to leverage it, and a very basic plan to get you started on the path to making the type of money you want. In the example, we’ll make some assumptions,
In your cases use your Own Numbers. Do the math, treat it like it your own busines becuase in many ways that is exactly what it is.
How Do You Get Paid?
Base + Variable = Earnings (What is the mix base to commission, 50/50, 70/30, etc)
Straight Commission – great let’s jump ahead to levels
In the video we show the assumption that you already have some business coming in or get paid in an ongoing fashion for existing business. Granted that is not always the case.
Next comes the levers about offer/product types.
In your sales Comp plan is one product set such as hardware paid a lower rate than say services (installation, consulting, maintenance)?
Are you paid more for new client/logo win?
Are there escalators in your comp plan for hitting levels over all, on certain buckets or offers?
Products or Services Sold (Revenue, Gross Margin, Units, Policies, Etc) X How you Get paid (percent of margins
If you work for a company (no offense to companies I do lots of work with some great ones) is your comp plan capped? it’s a two-part challenge we can cover in more detail at another time but the first is often the number they set is used to control how much you can earn, and secondly what happens when you hit the cap is critical
Finally, when it comes to reaching your income goals does your comp plan have a recurring revenue piece? Does it change based on previous sales and ongoing client business? This use to be mainly in the insurance, and finance world but now is in SaaS, Software, and Services organizations across a variety of industries.
Need some Sales Help?
P.S. Whenever you’re ready… here are 4 ways I can help you grow your business:
1. Subscribe to the Podcast
Twice a week we talk to founders, innovators, entrepreneurs, business owners, and of course sales leaders — about how they built, scaled, and profitably grew their businesses. – Just hit the subscribe on your favorite podcast service. (Apple, Spotify, Etc) Here’s a link to all the places the show can be found.
2. Join the Sales Minute Facebook Group and connect with other Top Performing Sales Professionals who are focused on growing their sales too
It’s our new Facebook community where smart salespeople, leaders, and owners learn to win more deals, get more income, and have a more fulfilling career. — Click Here PS if you want even more great content add me personally as well.
3. Join our 2021 Velocity Program and close your Must Win Deals.
If you’re not absolutely certain who the decisions makers are and what their buying criteria are in your top 3 opportunities I can help. I’m working with a few clients for the next 12 weeks to help win their deals and hit their goals — without a crazy amount of new prospecting, social media BS, or magic. If you want to accelerate your income and book of business, have an existing set of customers and prospects you can message me on Facebook, Twitter, Instagram, or WhatsApp or email me at firstname.lastname@example.org with the word “Velocity” and I’ll get you all the details.
4. Work with me and my team privately
If you’d like to work directly with me and my team to take your from where it is and grow it by an extra 6 or seven figures … just send me a message and with the word “Private”… tell me a little about your business and what you’d like to work on together, and I’ll get you all the details.