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Commission only. Base plus commission. Absolute commission plan. Relative commission plan. Straight line commission plan. When to pay commission. Quota and OTE. Setting quota. Yet without commission, reps are usually less motivated to go above and beyond. Commission only.
Recently read a provocative post declaring “Sales Quotas A Thing Of The Past!” ” For the most part, the article was a tutorial on pipeline metrics and a diatribe against much of the quota setting process. Much of the way sales quotas and goals are set is wrong. But is the answer throwing these out?
Impossible quotas. You want at least half, ideally 60%-70% of your reps, hitting quota. But you have to make sure good, well-trained reps can hit quota and be paid fairly. Have an actions quota, too. You’ll be surprised how many reps don’t hit their actions quota at first. She will close a lot more of them.
The most recent revision of the comp plan was pushing a particular product – if you sold module X, your commission for the entire deal would be 20% higher. Instead, he attached that item to every single order for the 3 months the SPIFF ran, discounted it 100% and took an extra 20% commission on the other items. and exceptions.
The typical “Every man for himself” sales culture would have you believe that you should only look out for yourself and make sure that everything you do centers around achieving YOUR quota. After all, your commission check is likely based upon your performance and not the teams.
A sales objective is not the same as a quota (although some quotas can also be sales objectives). Quotas are sales targets for reps, while sales objectives can be much broader. . For example, sales reps might have a quota to book 10 meetings every week. In some cases, sales-focused objectives are similar to quotas.
Objectives should be aligned with the overall business strategy and encompass both quantitative targets, such as revenue or marketshare, and qualitative goals, such as customer satisfaction or product knowledge. It typically includes a mix of fixed salary, commissions, bonuses, and incentives.
Common goals include: Growing marketshare in a particular region. The last thing you want is for your sales representatives to start churning because they’re not getting the same commission opportunities as reps with better territories. . Are sales reps in some markets overwhelmed while others struggle to meet their quotas? .
Jason Lemkin: And I think so usually, and let me add to that and then I’ll ask you the one follow up question about what you’re doing a marketing, because I think that will help you and help everyone. Jason Lemkin: You hire a head of sales, no earlier than when you have two reps hitting quota, right? Jason Lemkin: Okay.
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