What is a Long-Term Incentive Plan?

Businesses need incentives to attract and retain talent. A paycheck is one obvious type of incentive, but at the end of the day, any workplace can provide a paycheck. The real challenge for business owners is finding incentives that offer real value outside of simply allowing an employee to earn money for hours put in.

For many business owners, the solution to this problem is found by providing commission-based incentives. These are payments made for achieving certain items like closed deals. A commission-based strategy is often used as part of an overall long-term incentive plan, and it adds value because it pays extra for achieving goals rather than just clocking in for the day. In a nutshell, it incentivizes employees to work harder to receive bigger rewards.

Designing Commission Plans for Sales Development Representatives

One issue that you may face as a business owner is how to develop commission plans for different roles in your company. Specifically, the delineation must be made between sales representatives and account executives who close deals and sales development representatives (SDR) who qualify leads.

While creating a commission plan for account executives and traditional sales representatives is fairly straightforward, designing a good SDR commission plan is a bit more complicated. Because SDRs are typically tasked with finding and qualifying leads as opposed to finalizing deals, should they receive an equal split of a sales commission? Should their commission be separate entirely? Should they receive a lower commission compared to the closer? All of these questions and more need to be asked when designing a good SDR commission plan.

Every Business is Different

There’s really no right or wrong answer to the questions posed above as every business is different. In the end, your goal needs to be focused on incentivizing the achievement of goals based on role and capacity. How you lay out your long-term incentives using commission payments is up to you, but you want each employee to have a reason to work harder based on the reward that is available.

Read a similar article about commission management here at this page.

Best Social Media Sites for Job Searching

Networking is one of the most important components of job searching, and it's one of the top ways job seekers can get hired. Whether it's networking in-person or online, or using social media to grow your career, there are many ways social networking can help you get hired read more

How Artificial Intelligence is Impacting the Sales World

Artificial intelligence is one of the hottest topics in business these days. What was once something that was only discussed in science fiction novels and computer science labs is now vaunted in the consumer sector? Everything from self-driving vehicle technologies to Big Data involves the use of artificial intelligence, and it seems like the sky's the limit.

When it comes to the sales industry, artificial intelligence is also having a huge impact. Artificial intelligence for sales utilizes prescriptive and predictive data analysis to anticipate changing trends that results in the potential for more leads and more opportunities. Additionally, artificial intelligence for sales can look back at past campaigns to analyze performance faster and with greater efficiency.

Taking the Guesswork Out of Pricing

Even seasoned sales veterans still face challenges when it comes to pricing. Every situation is unique, and closing the deal may require a lot of thought put into pricing to get things done. Using artificial intelligence, sales professionals can rely on a detailed analysis completed by an algorithm to take much of the guesswork and time out of the process while still preparing a great deal.

Setting Goals Becomes More Efficient

Speaking of guesswork, there’s plenty of guesswork that goes into sales forecasting. While experienced sales professionals often have an easier time predicting trends, there are still a lot of variables involved in the forecasting process that can hinder success.

Using artificial intelligence, forecasting can become easier since this technology can quickly analyze past performance, factor in current conditions and predict with great accuracy where things are likely to end up. Using this knowledge, sales professionals can craft strategies for both short- and long-term success.

Revealing New Opportunities for Upselling

Upselling is a fantastic way to add value to a sale and increase profits, but targeting opportunities for upselling can be complex. Through the use of artificial intelligence, sales professionals have the ability to be presented with a range of upsell opportunities by allowing this technology to analyze connections between a lead prospect and the current deal being offered.

Read a similar article about supporting your remote sales team here at this page.

How to Pick the Right Compensation Plan for Your Team

Employee compensation is not a topic you should gloss over. Your team wants to get paid fairly and in a way that matches their performance and duties. While compensation plans might seem cut and dry, there's no one-size-fits-all option.

With this blog, we aim to clarify standard compensation plans and give you an idea of how to pick the right one for your team.

Hourly Compensation

When you pay your employees hourly, you're paying them for the time they spend working. It's as simple as that! You set an hourly rate, and your team gets paid for how long they're on the clock. Adjusting sales compensation plans for hourly workers is pretty easy as well.

Some view hourly workers as expendable, but it's a desirable compensation plan for many because it means employees are nonexempt from the overtime provisions of the Fair Labor Standards Act. It's an excellent option for money-motivated workers who want to take advantage of available overtime hours. Those who have fluctuating availability usually prefer it over other compensation plans.

Salary Compensation

With a straight salary compensation plan, your employees get paid a set amount. Usually, you establish an annual salary, and your team isn't eligible to receive overtime. So, what's the benefit of salaried plans?

Generally, salaries provide more flexibility in scheduling and where they work. With this plan, no one has to log hours, and there's more freedom in how people want to work. Most employees who aren't involved with direct sales will benefit from a straight salary compensation plan.

Salary Plus Commission

With salary and a commission, your team gets the best of both worlds. The salary provides some security and ensures that your employees get paid even during slow periods. Meanwhile, the commissions motivate them to contribute more to the bottom line.

Your sales team will usually prefer this plan. It rewards performance and provides plenty of room for growth. Adjusting sales compensation plans is a breeze with the right tools. As a result, you can continue to push your team further.

What Compensation Plan is Right for Your Team?

Those are just a few of the most commonly used plans. What's right for your company will depend on many factors. Have an open discussion and determine which option will reward your team the most.

Read a similar article about company culture in sales here at this page.

The Best Ways to Sell in a Weak Economy

Selling in a down economy is a task that no sales rep wants on their plate. Unfortunately, it’s just the reality of the sales environment sometimes. With that being said, people are still buying products and services to a point, regardless of what the economy is doing. Instead of getting disheartened, it’s a good idea to change up your sales tactics. Here are some of the best tips for selling in a down economy:

Take An Aggressive Approach

The act of selling in a down economy won’t happen if you just wait for the sales to come to you. You might have to take a more aggressive approach to sales than you might normally. This means chasing down prospects and generating as many leads as you can. Make sure to go for every sale, rather than dwell in the less than ideal situation you find yourself in.

Try More Palatable Pricing

Adjust your pricing to fit the economy. People may not want to buy your product or service outright, but the subscriptions and financing plans might be more tenable. If you’re able to take the hit, offering discounts is another good idea. You could even offer discounts through referrals. For instance, if a customer is able to get two other prospects to sign up for a subscription, that customer can get some of their months free. Speaking of referrals.

Don’t Be Afraid to Reach Out

It’s a good idea to network with your return customers and see if they don’t mind referring you to parties that might be interested. Remember, the more promising leads you can find the better.

Don’t Give Up and Keep it Simple

Sometimes the best advice is to just stick with what you know and go for it. Sometimes running through your script and continuing to work your sales process will pan out. If it isn’t, then you know it’s time to switch up your tactics and try something new. By taking the challenge in stride and facing it head on, you’ll give yourself the best opportunity for success.

Read a similar blog about sales commission here at this page.

Tips to Make a Successful Sale

Whether you're new to the world of sales or a seasoned professional, rejection is never easy! Not everyone knows how to handle rejection in sales, leading to all kinds of hurt feelings and frustration. While it's normal to feel those emotions, rejections are a great learning opportunity.

So how can you turn rejection into a success story? Keep reading to find out!

Don't Give Up After a Single Rejection

Did you know that a vast majority of sales require at least five interactions before closing the deal? If you give up after a single "no thank you," you're leaving tons of potential by the wayside!

Don't be afraid to follow up later. That doesn't mean you should hound prospective clients. Think about your previous interactions and see how you can improve your pitch. In many cases, it's external factors outside of your control that leads to the first rejection. Maybe it's because your competitor offered a better price or the client's budget doesn't have room for additional purchases.

Pay attention to those small details and see how you can improve the pitch on your next interaction.

Listen More, Talk Less

Nobody wants to listen to a rehearsed sales pitch. If you want to know how to handle rejection in sales, you need to learn to listen!

During your pitch, pay attention to the potential client's needs. Build a rapport and establish some trust. You can ask thoughtful questions and create a more nurturing environment. Listening makes your pitch come off as more organic and less eager.

The goal of listening is to gather as much information as possible. Use what you learn to create the best offer you can. Even if you still get a rejection, you might get valuable information you can use later. For example, you can catch those aforementioned external factors for your future follow-ups.

Turning Rejections into Opportunities

Closing sales is a nuanced process that takes time to master. Don't let your rejections get you down. Instead, use them to scrutinize your skills and make improvements. Know your strengths and work on your weaknesses. Before you know it, successful sales will come naturally.

Read a similar blog about sales commission here at this page.

How to Successfully Prevent and Handle Employee Payroll Disputes

Employers have a responsibility to make sure that their employees are paid fairly and within a timely manner. Naturally, you may take great strides to make sure that everyone is paid according to their agreement, but payroll disputes are a common issue for employers. Knowing how to reduce pay disputes helps your business avoid potential fines and retain more employees.

Build Trust With Accurate and Timely Payments

Payroll disputes sometimes snowball. Once one employee has an issue, others may quickly begin to look for problems that may or may not exist. One important way to be sure that you know how to reduce pay disputes is to put all of your information into one place. Using an online platform that stores and analyzes all of your sales commission data in one place makes it less likely that your company will make a single mistake.

Provide Clear and Transparent Sales and Commission Reports

People who work on commission sometimes track their sales, which can lead to discrepancy questions when their calculations don’t add up to what your company pays out. Providing your employees with a clear report at each major payroll marker helps them to see exactly why they are being paid a certain amount.

Aim to Provide Swift and Fair Resolutions

Swift resolutions tend to be beneficial for everyone involved. Your employees will work harder when they feel secure about their compensation. Your company benefits from avoiding lengthy and costly payroll disputes. Having organized records of each sale and the commission calculations helps your team resolve disputes before they escalate to higher levels.

Making sure that your employees are paid fairly and in a timely manner is one of your biggest priorities. Using technology helps you to avoid common payroll discrepancies that arise when people attempt to use paper and pencil recording and calculation methods. By heading off payroll problems before they start, you can keep your employees happy and avoid potential legal issues within your company.

Read a similar blog about sales software here at this page.