I thought I'd share a few good sales spreadsheet horror stories for you to share at your next campfire
Sales Performance Management Best Practices Blog
The time it takes from the close of a performance period to the payment of sales commissions one of the biggest factors that influence the strategic impact of your investment in sales commissions. We recommend that business leaders think about sales commissions the way they would a capital investment. How much is being invested and what benefits are is the business realizing.
The following is a 'Readers Digest' summary of a 2012 survey conducted by World@Work & ZS Associates on Sales Practices within the High Technology Industry. In the survey, 17 US based high tech companies (Computer hardware, software, networking gear, etc) with over 59,531 sales reps broken out across the following roles were surveyed;
Be sure to get a self-evaluation of your Sales Commissions process off on the right foot by fully understanding your needs. By working through this questionnaire up front you should be able to more fully understand the results you're shooting for with any process improvement efforts you consider undertaking.
I had a chance recently to sit down and listen to Jim Kelleher, CFO of LogMeIn, at a recent meeting of the Massachusetts High Technology Leadership Council as he described his experiences with SaaS Sales Compensation plans. It’s always interesting to hear what others are doing with their sales comp strategies and plans, especially from someone with such a broad level of experience and a track record of success in the SaaS world. I am happy to share with you this brief breakdown of some real world advice from Jim.
The level of involvement of the Finance function in the administration and management of the Sales Commissions process is increasing. This is encouraging finance leaders to take a long hard look at what they can do to balance the trend need for more sophisticated selling behaviors with the need to maintain adequate controls on the sales compensation process without making it too hard to administer. I found a report published by CFO Publishing in late 2010 (In my opinion, still recent enough to be relevant) to add some interesting data and insight to this discussion.
Homegrown solutions aimed at automating the Sales Commissions process fall into two main categories;
In every sales discussion we are always asked to define what differentiates NetCommissions from all the other vendors in the SPM marketplace. We have found that communicating the basic assumptions and principals that NetCommissions is built upon have evoked comments that sound much like “wow, that’s much different than the others we’ve talked to”. So here is a bit of insight into what is a very unique approach to Sales Performance Management;