The Sales Quota should be demanding but

[Dimaeiya323]

Imagine that, after designing your commission system and thinking and rethinking what the cut-off figure is, one of your salespeople falls just a few euros short of the target. What would you do?

A good commission system should be as clear as it is firm. Our advice is to try to make as few exceptions as possible, and if someone has missed the target by just a little… next time, they will surely make it! Relaxing the rules can set a damaging precedent for the entire company.

On the other hand, it could be that, due to various factors, in some cases doubts may arise as to whether or not an objective has been achieved. In this case, our recommendation would be to position ourselves with the salesperson if we intend for this to be a long-term relationship.

4. Unforeseen events and side effects
More than a requirement, this is something that must always be kept in mind when designing a commission system: there will always be unforeseen events and side effects that must be taken into account, and for this reason we must continue working to continuously optimize the system.

Let's look at a practical example: imagine a salesperson with a target of 20 sales per month. The 28th of the month arrives and he has only closed 10 sales, but that day he has two opportunities. Will he close those two deals on the 28th? No, he will leave them for the following month because he knows that this month he has no chance of reaching the target.

This is exactly what we are talking about. We need to find ways to prevent this from happening, minimising the new rules and, in turn, the new side effects as much as possible.

5. Sales Quota
One of the most important keys to making your commission system work is the Sales Quota; that is, the minimum target that must be reached each month . This is the best tool to align the interests of the salesperson and the company.

achievable. It is essential that the team feels motivated and capable of achieving it; whether you set a target too high or too low, the trust and morale of the team will be at stake in the long term. You can always rectify it, but without going against your agents.

6. Incentives for teamwork
One of the main problems with commission-based work is individualism . This type of system generates a lot of competitiveness within the team, and although this can be good for sales, it is usually very negative for the relationship between workers.

To combat this, you can create common goals that inspire the team to collaborate , help each other, and work together. For example: if all agents reach the Sales Quota, there will be a bonus for the entire team. Fantastic, right?

This is also key when adding new agents to the team. It is logical that, in this case, the most experienced agents invest part of their time training new staff, which is informally known as “ shadowing ”, and, consequently, lose some potential sales. Sharing commissions at this time is the fairest thing for everyone.

7. Basic salary
What should a salesperson who doesn't sell make as a base salary? Without commissions or extra ben cfo email list eat tool for staff management, since salespeople who don't perform will not last long in the company. On the other hand, if the commission system is well designed with good benefits and demanding but well-rewarded results, your team will not want to leave .

8. Penalty for poor sales
When a salesperson is too focused on results and sales volume, we may find that he or she oversells or makes promises to the customer that are then difficult for the company to fulfill.