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Build a Better Sales Comp Plan

How do you know when it's time to change yours?

October 10, 2005

Your sales force compensation has huge upside and downside potential. On one hand, your plan can be one of your strongest strategic tools. On the other, it is also your biggest ongoing cost. This article offers tools and tips to carefully review your plan to take advantage of its upside potential and minimize its downside cost.

If you're truly interested in being profitable, no longer is it feasible to do business based on models handed down from generation to generation. In other words, intense times call for strategic measures. For example, writes pricing and margin management experts Advanous in the NAW publication Price for Success, distributors must go to market with a keen understanding of the "cost to serve;" sales reps must have a working knowledge of how sales, ...

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