24 Nov I’m developing a compensation plan for outside sales reps selling a managed IT solution. I’m starting from scratch so any tips, examples or suggestions would be greatly appreciated. No point in trying to reinvent the wheel, right?
For one thing, keep the compensation simple. Percentages of order values work well in cases like this. Decide if you’re doing straight commission or a base plus commission. Try to keep the program incentive based on performance and long term contractual agreements. If you speak with a few of your reps to be surprised how often they might suggest less than more of what you were thinking, at that point a little more will make them “hungry”, watch your bottom line, but value the future volume they’ll produce. Just think about what you need and structure your compensation plan accordingly.