I Can Get That For Less From Your Competition

By Robert Estupinian

These days I hear a lot of complaints from salespeople who are complaining about a competitor lowering their prices and causing them to lose customers. It is always tempting for an organization to consider their frustrations and allow the salesperson to match the lower prices. However recent business history has clearly shown that reacting by meeting or lowering your prices to match your competitor does not always work.

In the end most businesses can’t sustain their operations using this tactic. Lowering prices too much will eventually affect gross margins and the overall profitability of the organization. So what can a company do deal with competitors that will simply give away the merchandise?

Remember the old Cola wars or the Burger wars?

The only people who benefited from those price wars were the consumers. Research done during the time showed that consumers were buying whatever brand was on sale that week, and there was NO loyalty to either brand.

Anyone that has been successful on the Internet knows this situation only too well. It is not uncommon that within a few weeks to a month; someone, somewhere, will be copying your strategy and trying to sell the same product(s) at a lower price. Brad Fallon (of Stompernet fame) shared a story of this happening to him with the sale of dartboards and dartboard accessories. As soon as he was doing well other sites began popping up offering the exact same equipment for $10 less than his asking price.

So what did Brad do?

Instead of lowering his price he increased the value of what he was offering. Brad
knew that he would not be able to differentiate himself simply by price alone. Instead what he did was offer complimentary information to all purchasers and increased the experience for each visitor and especially each purchaser. When you bought at Brad’s site you felt special and got a lot more than just the product. Of course, Brad did not get all the sales and I am sure that there were some people who did go to the competition because all they were interested in was price. However, years later, Brad is still selling on the web while a lot of those competitors are long gone…

Dealing with price objections and formulating a sustainable strategy is one of the many issues that we help companies and professional sales people deal with strategically and effectively. If you would want more information please contact our offices at 408-879-7280.

When Should a Business Consider Hiring a Superstar Salesperson?

By Robert Estupinian

One thing that is very true in just about every situation in life is that, “one size does not fit everyone”. This axiom is very true when it comes to companies and their sales force. Understanding the existing culture of the company and subsequently the management style is important before you begin to add any new personnel to an existing organization. 

 

While consulting with various companies, Robert Estupinian, has often been approached by companies interested in developing a compensation package in order to attract the superstar salespeople in their industry. Although on the surface this is an ideal concept for increasing sales, it can back fire if done incorrectly.  One thing to note is the personality trait of a true superstar.  A true superstar does not see themselves as a rank and file employee. In fact, many posses the mindset of an entrepreneur and value their independence to create and get the job in the way they see best.  In many ways they will represent a value partner rather than an employee.

 

So the problem arises when there is a disconnect between the values of the company and those of the superstar.  A company that is rooted in rules and procedures and has a very structured management style will have a very difficult time keeping a true superstar. Yes, they will be able to recruit these high producing individuals, but often they will lose them just as quickly. The most common mistake made is that companies take these superstars and then ask them to sell and perform according to their set of rules and procedures. The costs in recruiting, loss productivity, and loss opportunity, not to mention damage to customers is enormous.

 

Robert Estupinian is not suggesting that one management structure is better or worse than another.  Rather what Robert Estupinian is saying is that in order to fully realize the benefit of hiring a superstar make sure that they fit within the existing structure first.  Furthermore, take a moment to understand fully how they sell and how they conduct business to see if this is the way that works for your organization. Lastly, do not leave this to chance. I work with many organizations in helping them select salespeople and use many tools in determining best fit including psychographical evaluations.

 

Should you want more information on this subject please contact Sales Consultant, Robert Estupinian at 408-879-7280

Why Cracking The Whip On Your Sales People May Hurt Your Business

By Robert Estupinian

During these challenging times it is easy to see why many organizations would simply result to demanding their sales force increase their production.  Many times the prevailing wisdom believes that if sales are down then the sales force just needs to try harder and do more.  Trying harder often translates to simply performing more tasks and unfortunately this does not always result in more sales.  In other words increasing the number of calls, the number of presentations, and the number of proposals is akin to busy work.

The result is that CRM’s and weekly reports are generated that show more activity but the forecast from these activities is still lousy and the bottom line is even worse.

Another common solution to fixing dismal sales is to  launch a contest in hopes that this will motivate the sales force into trying more. More than not it is a combination of the carrot and the stick approach and ends up looking like the famous scene from the movie, “The Boiler Room”. In the movie the sales people are told that first price is a new car, second price is a set of steak knives, and there is no third price (since you are then fired).  In one organization that I consulted with I arrived as the company was both laying off salespeople and at the same time announcing a “new” incentive program.

The problem with most of these techniques is that organizations that use these procedures assume that these activities will indeed increase sales and the bottom line.  Many times this assumption has not been properly analyzed to see if the increase in cost and resources really does impact the bottom line.  In most cases the activities do not lead to more revenue. What happens is equivalent to a golfer incorrectly practicing his swing over and over. At the end of all that practice all he/she has done is perfected a bad swing.

A second serious miscalculation is the assumption that the sales people already know what the right activities  are and how to properly implement them for bottom line results. Truth be told there is more ignorance in sales strategies and procedures now than ever before.  This is due in part to the booming economy that all of us have been experiencing for the last several years. Many sales organizations have people who have not had any sales training at all.  Some of these sales people do have product training and know the features and benefits of their products and can explain them. However, just being able to explain the features and benefits will not result in more sales. The result is that we have more sales people who are nothing more than order takers than a professional and skillful consultative salesperson.

The best way to avoid these common misconceptions and frustrations is to invest now in a sales training program that will not only give your sales people the necessary skills to be effective, it will also determine what procedures are essential to increase your bottom line. Waiting for the economy to get better or for the sales force to take the initiative and obtain the necessary training is wishful thinking and could put your organization on a course to financial ruin.  Organizations that make the investment now will not only survive but actually thrive during these times.  I can assure you that most organizations will not do anything and throw caution to the wind.

The good news is that many sales training and sales performance programs are cost effective and can provide you with a verifiable return on your investment in a short period of time. Call my office at 408-879-7280 for a free no cost consultation to see how your organization can benefit from a comprehensive sales approach.

3 Reasons Why Salespeople Do Not Follow Up

By Robert Estupinian

There are some studies out there that show that 95% of all salespeople never follow up after the initial contact. The number is even higher for contacts that are gather at trade shows. Even when the contact information is recorded electronically and the data is organized for them they will not follow up with those persons that showed interest.

 

One of the worst cases of neglect that I witnessed occurred to one of my colleagues who was interested in buying a vacation townhome (yes, in this market), and could not get the real estate salesperson to call him back for over a week. By the time the salesperson returned the call he had decided to buy something else. The level of interest for most contacts is at the maximum 48 hours so following up with interested clients has to be a top priority. So given these facts let’s explore some reasons why salespeople will not follow up.

 

They are waiting for the customer to contact them

When I worked with salespeople many will tell me that they provide such an exceptional level of service that if the prospect is interested they will call. This is simply a misconception in believing that the only thing the prospect is thinking about is the product or service the salesperson is offering. Truth be told the salesperson is not even out of the door when the prospect is onto something else.  We all are very busy these days and for most prospects it is better to procrastinate than to make a decision.

 

Lack of a system to do the follow up

I have seen many organizations spend a lot of time and money planning the trade show and what will be given away at the trade show to attract prospects to the both. One thing that is often missing is a system for categorizing the contacts and following up after the show.  Today, given the economic changes occurring in the economy we cannot afford to simply collect names we need to find buyers.  So this begins by designing a booth that helps screen out the browsing public from the buyers. Then you need a organized plan to pursue those prospects within the 48 hour window.

 

Lack of training

The vast majority of salespeople that I encounter have never been properly trained on how to effectively follow up. They do not have an organized system or procedure to do this very important task. At times it begins by developing some form of contact database system to help remind and schedule these activities.  Next, is developing the proper follow up presentation.  The follow up call should be a natural progression in the sales cycle and should continue moving the prospect towards a buying decision. These systems and procedures cannot happen by accident and it cannot be left to each individual salesperson to develop their own methodology.  As the facts show the great majority of salespeople simply will not do it. The good news is that setting up such a program is not difficult and can be done for any size business. If you have any questions regarding how an effective follow up program can be designed and implemented in your business simply call 408-879-7280 and we will be happy to answer your questions.

Why Sales Training Has To Be More Than Just Teaching Salespeople What To Say

By Robert Estupinian

Most people  love to buy, but hate to be sold. Today, many customers are seeking an experience when they buy and that means an uplifting one at that. Organizations that are succeeding in this economy know that creating a defining experience for the customer is important to repeat and profitable business. However, at times businesses have the tendency to miss the mark by trying a “one-size fits all” approach in training their salespeople and end up pushing away their customers.

Recently, I encountered a poorly planned and executed strategy that was designed to create a positive experience when I visited my  local bank branch.  Immediately upon entering the bank I was abruptly approached by a bank personnel.  She immediately asked me , “What brought me to the bank today”. The way that the message was conveyed was rather intrusive although I am sure that she did not intend to be so.  Her stance and demeanor made it appear as if she was asking me , “why are you here, don’t you have some place to go?”.  I thought I have some fun with her and simply replied  that I was there to loiter about.   She had no idea of what I was talking about and decided to go ask her manager about my comment.  

The manager began to laugh and came over to talk to me while I was completing my banking transaction. He began to tell me that the bank had required all branches to have a person stand right buy the door and welcome clients as they walked in. The purpose of asking the question was simply to help customers get to where they need to go.  He told me that in large branches there are often so many people coming in and out, and the space is so large that customers get lost and often feel overwhelmed.  So management came up with the idea of the” greeter” similar to the Wal-Mart approach.

Now the silly thing about this explanation is that this is a small branch with very limited traffic. In fact it is virtually impossible to wonder around due to the size of the branch.  The branch manager went on to tell me that the words the representative had used were exactly what was mandated by upper management. The objective was for the bank personnel to avoid sounding insincere by asking, “how are you doing today”?  Instead they came up with the question, “what brings you in today”. 

As you can see this is not a bad concept , but it does illustrate how not all approaches will work in all settings or with all personnel.   There is no such thing as a magic words that will increase the buying behavior of customers. Yet, many managers and salespeople are often looking for those series of words that will hypnotize the customer into buying their products or services.  

Even today I have come across many sales training programs that teach and require the participants to  memorize a series of “magic” words.   For example, some of these sales training programs have been teaching for years that when the customer asks a question always respond with a question:

Customer: Does this widget come in red?

Salesperson: Is it important to you that it come in red?

 

As you can imagine these types of techniques are perceived as manipulative and do not help in developing any lasting relationship with the customer.  If anything customers will begin to avoid the establishment and the salesperson.  

 

There is an alternative way to teach selling techniques that take into account the strengths of the salesperson and focus on a consultative approach.  The programs that I teach focus on understanding and developing   the life time value of the customer rather than just achieving a single sale.  

 

Especially in our current economic environment no business can afford to churn and burn customers. More than ever  businesses need to develop raving fans who will not repeatedly buy, but will also tell their family and friends  about their positive experience.

 

Please feel free to contact me for more information regarding sales and staff training programs that focus on creating memorable experiences for your clients.

How Casual Dress Can Affect The Bottom Line

By Robert Estupinian

As a sales consultant, I was recently invited to visit a company that was contemplating increase the size of their sales force.  As I have mentioned before in this blog, it is always important to review what has been done in the past as well as what is currently being done in order to obtain a good view of the opportunities and challenges that are present. 

This company focuses on selling B to B and most of the sales are obtained from the sales force going out and meeting with prospects face to face. What struck me rather odd was the attire of the entire sales team. All of them were dressed in a very casual manner.  As I asked about the dress code I was told that a lot of the business that they call on have the same dress down environment and that they were just matching what they encountered in the field.  As we continued to evaluate the performance of the sales force the numbers clearly indicated that it was mediocre at best.  I suggested that we analyze what was behind the low numbers before we brought in more salespeople. The first thing I wonder about was the dress code.

When a salesperson walks into a prospects office they are instantly conveying to that prospect who they are, who the company is that they represent, the quality of their product/ service, and many other non verbal communications.  often what occurs in many presentations is a cognitive dissonance between what the salesperson is saying and what they are conveying non verbally.  What they are wearing and their overall grooming speaks volumes and is often something that is taken for granted by management.

Research has shown that the way a person is dressed will impact their performance either in a good way or a bad way. Let’s take a look at two areas.

The confidence of the salesperson

One reason to maintain a professional and formal dress code is that it will impact subconsciously the confidence of the salesperson making the call.  Most people will agree that you tend to be more relaxed in your speech and mannerisms when we are dressed casually.  In contrast when we are dressed professionally and are properly groomed, you feel confident and usually are more mentally alter. These thoughts and attitudes show up in the presentation.

 

The perceived value of your product or service

Many years ago I saw a sizable real estate transaction questioned and almost lost at the end simply because the real estate agent presented the buyer with a low cost ball point pen at the contract signing appointment.  When a salesperson is selling a top end product their attire and all the other items they carry need to reflect that same level of quality.  Otherwise there is a subconscious disconnect that occurs in the prospects mind. Of course the prospect will never tell the salesperson that there is this disconnect.  Rather it shows up in lack of sales.

 

Now  I do not intend to state that improving the appearance of the sales force will automatically translate into higher sales.  Rather it will help in preventing additional distractions to take away from the sales efforts that are being made. When we look at some of the  top sales forces in the world we can see that without exception they all maintain a tight control over the appearance of their salespeople. Benchmarking and comparing against the best in the world is always a winning strategy

 

 

 

Is a 100% Commission Plan The Best Way To Compensate Salespeople?

By Robert Estupinian

As the economy continues to challenge many businesses the question of effective compensation systems becomes more of a concern for many organizations. A recent article in USA Today highlights some of the concerns that many people have today about commissions.  (http://www.usatoday.com/money/economy/2008-06-01-commission-tips-pay-income_N.htm)

 

Without a doubt the life blood of the business is sales. Without sales nothing happens, no revenue and no profits. Yet, like marketing and advertising costs business owners want to make sure that they are getting a return on their investment. As such the question on how to structure the compensation for these salespeople is of major concern. And when times are tight reducing or eliminating payroll expenses is a serious consideration. The last thing any business wants to do is have a payroll cost and no return associated with it.

 

Therefore, most organizations usually see a 100% commission program as a basic form of compensation when it comes to paying their salespeople.  Under this compensation plan the salesperson is only compensated when they bring in a transaction.  Often the salesperson is considered an independent contractor meaning that the employer is exempt from having to pay the typical employer expenses such as payroll and benefits. In some cases such independent salespersons may even represent many other comparable products.

 

The obvious benefit of the 100% commission salesperson is the cost of employment and assumed low risk of hiring.  However, one concern with this type of compensation program stems from the level of control that a business can have over the salesperson. In order to preserve the independent contractor status the internal revenue service has outlined several rules that restrict the amount of control that a business can have over its independent contractors. Violating these rules can then impose severe tax liability on the organization. For example, businesses have to be very careful on requiring independent contractors to work specific hours, having to attend company meetings, among other things.  More information about this issue can be found at:

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

 

One thing to remember is that there still is a risk of hiring the wrong person regardless of the financial cost. I have worked with organizations that felt they were not financially impacted from a non performing salesperson simply because they did not have to pay a check. The fact is that a non performing person can have just as much if not more harmful effects on your bottom line. The first thing to remember is that if you hired them they represent you and your company.  Their behavior and lack of production has an eroding effect on your whole operation and takes away valuable opportunities in the marketplace. A non performing salesperson also gives management the illusion that they have a sales force and can end up affecting projections and the allocation of resources.

 

 

There is common misconception that 100% commission programs attract less than qualified salespeople. This is simply not true. Many top corporations including the major wire houses and high end consulting companies consistently attract people with very impressive resumes and educational backgrounds. To these individuals the form of compensation is attractive because of the opportunity to make as much money without limitations. The idea of a salary would be limiting to their financial goals. Therefore, the lack of salary is not a detriment but rather liberating and the value is in the opportunity the position affords.

 

So should you consider developing or changing your sales force compensation to a 100% commission program? The answer depends on the individual business and requires taking a look at a few key areas including but not limited to the gross margins and company culture. Like anything there is no “one size fits all answer” to this question. The worst thing that most organizations do is adopt a compensation program without really doing the analysis first. The analysis is not something that should take a long time, but not doing it can cost you dearly.

Why Should Business Owners Care About Sales Strategy?

By Robert Estupinian

 

During slowing economic times business owners will consider a sales training program as a way to increase revenues and profits. While it is true that sales training can improve the bottom line it is as important that the right kind of sales training be implemented and coordinated with a well thought out sales strategy.

 

Simply teaching salespeople sales techniques will not necessarily translate into higher sales. Yet much of the time this is exactly what is done by a lot of organizations. I have had situations where I have been brought in to “increase the conversion rate of the salespeople”, or asked to “teach them to close better”. Almost without an exception the solution lies not in sharpening their sales techniques, but in improving their sales strategy.

 

Sales strategy is the “how” of “how will we approach the clients and get them to buy?” There are many different ways to approach the prospects and the salespeople need to be in line with the process so that they complement rather than interfere with the process.

 

This begins with understanding who the target audience is and why the organization is targeting them. Sure, I understand the obvious answer; the target is anyone who has a need and the ability to buy our product/services.  But the fact is that it goes way beyond that. What I am referring to really is about understanding the needs, pains, and desires of this target audience.

 

This goes way beyond the superficial information of who they are and what they do. The market intelligence that I am referring to is the type of information that will make the difference and leaves the prospect saying, “This Company really knows me”.  When that happens the sales process is simplified and the prospect walks themselves through to the purchase.

 

Once the organization has this information they are in a better position to develop a marketing and sales strategy that complements each other, and unifies that message to the prospect. There are several well documented methodologies for doing this type of research, and it does not have to take a long time or a lot of money. In fact, I have performed this type of analysis for various organizations, and developed the whole process in a very short period of time.

 

The bottom line is that a good sales strategy makes all parts of the organization run smoothly and is one often a missed opportunity to maximize your profits.

 

If you would like any more information or have any questions about this process, please feel free to contact Robert Estupinian at 408-879-7280 or email at Robert@mutualvisionllc.com

When Going After A Star Performer Is A Bad Thing.

By Robert Estupinian

A few weeks ago I was sitting down talking with a business owner who was interested in recruiting one of the top salespeople from a major competitor. Based on the stories she shared with me about this star performer, the possibility of having the salesperson come to work for her was a great opportunity. However, I want to share with you some of the thoughts that came to mind and that anyone considering hiring a star performer should consider.

 

Past performance is not indicative of future performance.

The annuals of most sales organizations are filled with the accounts of those too good to be true hires that never produced. In some cases they did produce, but the results were less than lackluster, and yet the compensation they received was significant. There are many reasons why this occurs.  First, many times the salesperson may be successful because of the structure and support that they are receiving at their current employer. It could be as easy as having an administrative assistant that goes beyond the call of duty regularly to support the salesperson. This was the case with one “top” mortgage loan officer a few years ago. Once they were recruited away this “top” producer was never able to obtain even a percentage of the sales that he achieved before. Upon investigation it was not the salesperson, but rather his processor that was really doing all the selling and follow-up.

 

Secondly, any company thinking about hiring a star performer must make sure that they are not inheriting someone else’s headache. At times the legend of these star performers runs long after they last produced. A common joke among commercial brokers is the account of the broker who continues to talk about the big multimillion dollar deal that they closed. The punch line is that the deal occurred two years ago, and they have not done anything since. Yet, when these commercial salespeople they speak about the event as if it just happened.

 

Similarly, it is important to look at the selling environment at the time that the results were obtained by the star performer. This is never more important than in today’s selling environment. Yesterday’s star producer may not be able to compete in today’s challenging economic environment. As things get tougher there are those salespersons that will leap from one company to the other never producing at any of them. A year ago I ran into this situation with a client who hired a “top” producer from a major bank. Previous to working for the major bank she had worked for a smaller regional bank and had a lot of success there. The major bank hired her away and then my client hired her away from the major bank because of her legendary abilities. As you can imagine once at my client’s company she did not produce at all and they ended up terminating her soon afterward. Upon looking into the situation I discovered that when she worked for the small regional bank she was selling in a 100% virgin territory. There literally was no other competitor for 100 miles. By the time that my client hired her she was competing with seven other comparable service providers and she did not have the skills to effectively produce under those circumstances.

 

Good fit is more important.

A good question to ask anytime you bring anyone into your organization is, will this potential hire be a good fit for the team and the organization?  This single question will make more of an impact than simply looking to hire someone that has the potential to bring in the numbers. Let me explain by virtue of a true example. A financial services organization that I consulted with was able to recruit away a “top” investment advisor. This advisor was able to bring in the numbers faster than anyone ever had in the history of the firm. His numbers in the first 60 days were literally 200% better than anyone had previously been able to accomplish during the same time. Management was elated and the future appeared to be bright for both the firm and the new advisor. However, by day 90 complaints began to come in from the individuals that this advisor had sold to. By 120 days from his hire date he was still bringing in business, but the firm was also cancelling and refunding clients.  After a careful review of the situation it became apparent that this advisor would say and do anything to get the business including misrepresenting the facts. 

 

In another situation I ran into an organization that hired a “top” producer who did perform ethically, but ended up tearing down the entire sales team. One reason was the ego needs of this top producer. He required perks and special attention that was not available to the rest of the sales team. Whatever this top producer asked for was granted including price concessions and bonuses not available to the rest of the sales team. To add insult to injury, the top producer looked down on the rest of the sales team as being inferior to him. He refused to attend any sales meetings or work with any other sales team members. In short order the special treatment and his arrogance began to affect the rest of the sales team and slowly they began to leave the organization. Once this happen his production was not sufficient to cover the loss of production from the sales people that had left. The true cost of losing those good sales people was more than the profit that this “top” producer had brought in.

 

The foregoing information is just a sample of the few things that any business owner should consider before hiring a star performer. This being said, this does not mean that you never hire star performers; rather you need to take into consideration many aspects of the hire rather than just the numbers that they can potentially produce. Working with a sales consultant that can investigate and evaluate the fit and performance of a star performer is one way to maximize your success and at the same time minimize your frustrations. If you have any questions about this article or would like to discuss your situation, I welcome you to contact me at 408-879-7280 or email me at Robert@mutualvisionllc.com

How to Screw Up a Sales Incentive and Compensation Programs

By Robert Estupinian

 

A lot of business owners have told me that they believe that sales compensation programs failed or are not effective. Another common concern is the perceived difficulty of developing an effective sales force compensation program. The fact is that a properly designed incentive and compensation program can be easily implemented and can actually become an asset of the company if done properly.

 

When looking to develop a sales compensation and incentive program you can begin by avoiding five of the most common mistakes companies have made. Let’s begin to examine some of these mistakes.

 

1. Designing a Program That Does Not Involve Input From The Sales Department.

I have seen a lot of compensation programs that were designed by the CFO and his staff. These plans are often DOA (dead on arrival) by the time that the sales manager received the “good news”.  I was present at one company, when the new incentive program was introduced to the sales staff and the sales manager was totally unaware that the company was launching an incentive program. As you can imagine the program failed miserably and the sales manager ended up leaving shortly after its introduction.  By not including the input of at least the sales manager and preferably a top producing sales person, you miss a great opportunity to really understand what motivates the sales team and learn about their expectations. I am not saying that the numbers are not important. After all the sales incentive and compensation program must produce a return on investment that is a true benefit for the company first and foremost. However, in order for the program to be of real value to the company, as well as the sales team, you need input.

 

1. Changing The Rules of The Incentive Program

Nothing will demoralize a staff more than changing the rules in your incentive or compensation program once it is launched. At times this happens because the program was launched too quickly without looking at all the financial aspects first.  A common perception is to change the program because too many salespeople are hitting the targets to easily. 

 

1.  Paying Late

To a salesperson the incentive and compensation program is all too important. This is not an extra bonus for them. Rather, this is the other half of their compensation. Paying late communicates to them that the company does not care about them and that the incentive is not that important.   Another dangerous tendency is placing policies that delay the payout of incentives. These policies can actually create a situation where salespeople begin to do unethical things. I discovered this behavior occurring with a major mortgage company a few years ago. According to the policies of this particular company, a salesperson would only receive their commission on transactions that closed by the last working day of the month. Otherwise if the transaction closed one day later they would have to wait a full month before that commission would be paid. The result is that these salespeople began to do whatever was necessary to close a transaction to the detriment of the clients.

 

1. Sending an Incentive Check Without Details.

Alright so the company delivered the incentive check on time, but there is nothing on the stub except the amount of the check. This is at best is simply frustrating to anyone who has worked hard, and has a significant pipeline of business. The first thing that most salespeople wonder is if there is a transaction missing from the check, or has a mistake been made in the calculation. This results in time being wasted by a lot of people trying to get the details of the check amount. The whole thing is perceived as confusing and unprofessional by the sales staff  and this can develop into a disgruntle employee.

 

1. Making The Program Too Confusing.

A program that requires an advance degree in applied mathematics is simply not going to work. In fact such programs have the opposite effect with salespeople. They are not motivated but demotivated and begin to look for work with the competition. A program should be easily understood and administered in order to be effective for all concern. Having a simply but effective program also helps in being able to attract and retain salespeople.

 

We could go on and on about the various mistakes that companies have made trying to implement an incentive and compensation program. The fact is that an good Incentive and compensation program can be designed that increase the bottom line and helps retain and attract good salespeople. The secrete to putting it all together is having a sales consultant that understands both the needs of the business to increase their return on investment and the sales teams needs.

 

If you would like more information on Sales force compensation please contact me at 408-879-7280.