Does anyone have experience putting a commissioned sales force together successfully?
I have an exciting product / service and need a simple but effective commissioned sales structure that is fair, incentivized without giving away the house.
Yes I do, and why this will be a relatively easy process, the key point of the sales force team being successful in you campaign is provide them full detail product/services knowledge(crucial component), and have a incentive attach to the commission base ( it can be a time frame, or per sale etc. And keep them Pumped Up! Success in any sales campaign is "energy".
Have done it quite a bit. It is not simple. Depends on what you sell, and what the rest of the Market looks like. I would start with a Head of Sales who knows the Market that you are in. Then, it is about understanding, the Sales Cycle, Sales Process, Typical duration of the Cycle, and other things. It is also about ensuring that there is a very clear view of where you want to go.
One of the fundamental questions that can change the compensation model significantly is where will the reps find new opportunities? Bottom line - if you're able to supply reps with pre-qualified leads, then you have a lot more options in compensation. If you leave it up to them to generate their own opportunities, you've got to compensate them more highly. Here's a video on how you can affordably provide pre-qualified leads to reps consistently - http://www.salesnexus.com/starter-kit.html
Please check out this article, Kirk. http://blog.capterra.com/what-commissions-should-i-pay-my-new-salesperson/
Happy to assist and provide some guidance/mentoring.
I've achieved sustainable success in heading up various sales divisions, ACQ/RETENTION, innovative growth/development, AOP and commercial acumen, strategic planning/management, extensive experience in commission models/sales performance and proven capability with managing diverse variables effectively (sales groups, product mixes, campaigns, commission structures, incentive plans, forecasting/performance management models and outsourced sales partners).
Feel free to book in 15-20mins for no charge if you would like to discuss further/pick my brain, get guidance or support in different models and sales management approaches and their probability for success etc.
Pls touch base via Mosaic PM, Linkedin or via my site ausync.biz for some no bull, impartial and genuine advice.
We ha e extensive experience in that area. Please reach me on LinkedIn
I have a tremendous amount of experience in building and rebuilding sales teams in the technology industry. I would welcome the opportunity to talk with you to see if I can help or refer you to someone who can.
Kirk - I am interpreting your question as 1) what channels to market should I consider (direct commissioned, rep, distributor, etc.) and 2) once I decide on how to go to market how do I determine how to effectively compensate for performance? Sales compensation plans should be designed to be easily understood by the salespeople (direct or indirect), and in line with profitability and margin objectives, Just the fact that you said product AND services tells me this is a broader consideration once company objectives are considered. This is what I do for a living. If you need help in designing an effective plan that will drive performance, feel free to reach out...Randy Johnson
The Sales VP, LLC
If you have a sales strategy (one year, preferably 3 year) and a sales force design (or actual people already in place) which includes sales channels and split by geographies/customer types etc and also a clear sales process and message (ie if you have the entire strategy and plan done) then the commissions become easier. Then you must avoid standard pitfalls (like sandbagging)
It really depends on the product. Margins, MRC or one off sale.
I like to help. However, You don't specify what kind of product you trying to sell and which field industry?
I've had lots of experience in this field. Is it fair to say, you're looking to build an independent contractor sales force. You are wise to reach out here. You're already making a mistake because you're designing a compensation plan and backing into a strategy. Obvious rookie error!
There are so many models to choose from based on what you're trying to accomplish, the condition of your business, and the behaviors you want to reward. A lot of it also depends up the culture you're attempting to create.
For example, there's the insurance agency model that is part base plus commission. The rep model - 100% commissioned salespeople. Then there are the direct sales models of Party Plan (Mary Kay) and Multilevel Marketing (Amway). Each has its pros and cons.
So much of where your business is along the development path as a business (not the technology) matters in designing the system. Who will recruit and manage the team? What support will your offer? What support or services are needed or given after the initial sale? Who will provide that?
Do you get the picture? As much as you want a simple answer, if you believe in the potential of your offering then give it the due it deserves by thinking through to the right business model, infrastructure, and offering to the sales force. You'll be dollars ahead in the long run and will have a high probably for accelerated growth.
Kirk: is the product you want pitched personalized mobile app development services? If so, forming a commission-only force of sales professionals will most likely be very difficult. You may want to leverage sales interns that can get college credit plus some cash without breaking the bank for you. They are also inherently tech/mobile savvy. Just a thought...
Describe for me the following:
- Target total cost of sales as a percentage of revenue.
- Ideal client (and/or client range - mfg, banking, small bus, etc)
- Target contact - CEO, CFO, CIO, VPHR
- Average sale size - and margin
There are many factors to creating a sales comp plan. More important however, is finding the right sales model - coverage model and go-to-market.