The first quarter of 2022 has already ended and you are almost halfway into the second quarter. Did your business put up a good sales performance in the previous quarter? Did your business meet the estimated growth rate for the first quarter? If it did not, you must consider taking a deep insight into aspects concerned with the problem and consider making necessary amendments to your previous sales commission plan. A sales commission plan is a detailed, full-fledged and well thought plan made for commission management. A commission plan is made either manually through spreadsheets or by using commission software also called commission management software.
Although it is still in practice, manual commission planning is however now an outdated method of commission planning, businesses worldwide are now looking forward to and prefer to use commission management softwares for the commission planning process. The simple and most logical reason behind why the prefer commission management softwares for commission planning over manual commission planning through spreadsheets is the simple yet most sophisticated work that these softwares put up. The commission plans made and managed by a commission management software is unlike any commission management plan made manually. Commission management softwares gained its popularity and set its foot in the market because of the multifield benefits they offer.
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An insight into the sales commission that companies offer to their sales reps
Sales commission that companies offer to their sales reps is handed out to them with reference to the sales commission plan designed by either of the two methods in practice i.e, manually through spreadsheets or by using commission management softwares. Offering sales commission to the sales reps is a general practice exercised by almost every business out there, it intends to motivate the sales reps to put in utmost effort and go beyond the boundaries of their limits in order to achieve the sales quota assigned to them.
The sales reps are assigned a certain sales quota by their respective sales leaders. At the same time when the reps are being assigned their sales quota, they also receive a specified time frame within which they are then supposed to achieve the sales quota assigned to them. On successful attainment of the sales quota within the allotted time frame, the reps receive a certain sales commission which was earlier discussed or declared before assigning the sales quota. Companies offer SPIFF to their reps. When talking about SPIFF, a major and obvious question arises: what is a spiff in sales and how do they prove to be fruitful in sales. SPIFF stands for Sales Performance Incentive Fund and is an ad hoc incentive offered to the sales reps at times when sales leaders see fit or they want to increase the sales pace and boost the sales performance for the business. SPIFF is an incentive like any other incentive but it need not be monetary.
How can you prepare the best commission plan?
By including a few key features in your commission plan you ensure the success of your commission plan and can further witness an exponential growth in the sales performance of your business. You must not forget to include some of the key features like accuracy and flexibility. Flexibility in a commission plan helps you to adapt to changes quite easily without making any new changes in the original commission structure.
There is a software; ElevateHQ, which offers accuracy and flexibility and also transparency, data insights and real time exposure, which ultimately makes it the best software available for commission planning.
