Sales Compensation Cycle

Description
"In most companies, Sales is the only revenue-generating function. Everything else is a cost center."

The importance of Sales is thus indisputable. For such an important function, it becomes equally as important to design an appropriate Sales Compensation Plan.

Compensation is a powerful tool for management to answer the question, “How do we get our people to do as much as possible of the right kind of work?”

Sales Compensation is often simplified to a discussion between fixed-salary vs. commission-based systems. To design an effective Sales Compensation Plan requires a much more holistic and nuanced understanding of the dynamics of Sales Compensation.

To better understand the dynamics of Sales Compensation, we should familiarize ourselves with the Sales Compensation Cycle. This framework captures the interplay among compensation, motivation, and evaluation--and how these elements drive both effort and results (i.e. sales). In this presentation, we discuss the 5 key elements which comprise the Sales Compensation Cycle:

1. Compensation Plan
2. Motivation
3. Effort
4. Results
5. Evaluation

We dive into each of these areas in detail to better understand the process, implications, considerations, and interrelationships among the elements. Additional topics discussed include the Fiaccabrino Selection Process (FSP), Performance Measures, Perceived Rewards, Passive vs. Managed Sales Management, among other topics.

This deck also includes slide templates you can use in your own business presentations.