Can You Fix a Failed Sales Compensation Plan ?

In a word, no! Putting a fix on a current and failing plan will not, by itself, restore sales success. We find that in most cases the sales compensation plan has not caused poor sales performance. Rather, the sales compensation plan becomes the lightning rod for change because it reveals performance deficiencies.

Take a commission plan where the company pays a percentage of sales as a commission and pays it from the first dollar the salesperson brings in each year. Management comes to realize that this is not really a first-dollar commission plan. Not all the customers quit buying each year; the salespeople don't have to start fresh. In fact, the company is paying the salespeople an amount disproportionate ...

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