Salespeople come in all shapes, sizes from many different backgrounds. They are all individuals, and hence are motivated by different things. There is no 'one size fits all' template for a commission or bonus structure. What one person sees as an 'unrealistic' basic salary, others will see as generous.
However, if you have gone to the trouble and expense or hiring a sales professional, you will need to consider the following to try and get the best out of your new recruit:
1. Set SMART objectives. SMART stands for:
Specific - are targets well defined?
Measurable - is achievement or failure easy to recognise and demonstrate?
Achievable - do you have buy-in from the salesperson who will 'own' these targets?
Realistic - considering knowledge, resources, time and conditions, can this be done?
Time-bound - has enough time been allowed to achieve the goal?
2. Find a reward scheme that works for the company (is it fair, affordable and maintainable?), and the individual (is it fair, easy to understand and motivates the salesperson?). Get to know your sales person or sales team and find out what makes them tick. There may be some constraints in terms of company policy and perceived 'fairness' among all members of the team, but tailoring remuneration to personalities can have great results.
3. Manage them. Acknowledge and praise progress, question under delivery and take appropriate action. Don't procrastinate. Given a reasonable degree of experience, your heart and your head will tell you if shortcomings can be addressed with management or training, or if you are fighting a losing battle. When you have made up your mind, act on it.
4. Take time to analyse what has worked and what hasn't. Make changes (major and minor) to the way you manage, sales process, remuneration schemes, environment and conditions. Set your own KPOs (Key Performance Objectives) and monitor your KPIs (Key Performance Indicators) and use them to help you drive constant improvement in your sales department.
Happy selling and managing!
Kind regards,
Jim.
However, if you have gone to the trouble and expense or hiring a sales professional, you will need to consider the following to try and get the best out of your new recruit:
1. Set SMART objectives. SMART stands for:
Specific - are targets well defined?
Measurable - is achievement or failure easy to recognise and demonstrate?
Achievable - do you have buy-in from the salesperson who will 'own' these targets?
Realistic - considering knowledge, resources, time and conditions, can this be done?
Time-bound - has enough time been allowed to achieve the goal?
2. Find a reward scheme that works for the company (is it fair, affordable and maintainable?), and the individual (is it fair, easy to understand and motivates the salesperson?). Get to know your sales person or sales team and find out what makes them tick. There may be some constraints in terms of company policy and perceived 'fairness' among all members of the team, but tailoring remuneration to personalities can have great results.
3. Manage them. Acknowledge and praise progress, question under delivery and take appropriate action. Don't procrastinate. Given a reasonable degree of experience, your heart and your head will tell you if shortcomings can be addressed with management or training, or if you are fighting a losing battle. When you have made up your mind, act on it.
4. Take time to analyse what has worked and what hasn't. Make changes (major and minor) to the way you manage, sales process, remuneration schemes, environment and conditions. Set your own KPOs (Key Performance Objectives) and monitor your KPIs (Key Performance Indicators) and use them to help you drive constant improvement in your sales department.
Happy selling and managing!
Kind regards,
Jim.
Image credit: anatolymas / 123RF Stock Photo
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