Sales compensation details vary from company to company, as they should. However every plan shows the same four general tell-tale signs that it isn’t working: murky clarity, no job description, top performers leaving and quotas not managed well.
Spot these red flags and you can make the correction before the plan passes the point of no return!
Murky Waters with no Documentation
There is arguable nothing more important to the sales compensation plan than clearly defining it and the accompanying policy. No clarity means sales reps have to make assumptions while relying on instincts and experience. Since they are likely to be wrong, this leads to confusion about how to focus their efforts and how they are rewarded for it.
The solution: provide them with a clearly written plan that outlines quotas, incentives and rules. But don’t go overboard with quotas! It’s important to build in a buffer so that numbers and goals aren’t viewed impossible, especially over the long haul.