Bonus Structure

lrenoll

I need help .. my VP of Sales wants me to gather some bones structures for sales people from other Companies so he can evaluate ours. Anyone have anything they can share with me or can direct me to a web site etc? I'd be most appreciative. And of course, he wants it today. Thanks!!!

Pork

Irenoll, My "bones structure" do not come cheap, but my "bonus structure" is always based on an expected agreed to achievement goal for a competitive base salary. Once one achieves the base "sales goal" then based on an assigned territory and history levels of achievement are then set as a stair case. Each month ones compensation is different depending on the levels of sales achieved in steps. To increase one's base one most achieve bonus steps continuously over a sustained period. Thus, the territory is becoming "mature" and the salesman more valuable and important to the sustainment of this territory. Your company bonus program should always be centered on gaining market share within the territory and keeping the sales person interested in keeping the customers on-board while aggressively pulling more sales and the generation of new business with new customer orders. Repeat business and sales increases with an old customer is very important to the company; new salesperson in an old mature territory is very risky. We customers like the relationships built with our vendors and trust their participation. Bonus programs that do not enhance the company goal of sales territory maturity or saleperson growth in the company are doomed to failure. What are your company objectives for sales employees? What are you trying to incent? What are company objectives toward market share? Is your sales product a self selling item?

Don't answer the questions for me, but you should task your sales manager to identify the company's objectives and then your exsamples might help you and he to understand the relationship between our bonus programs and your current ones. We may be after territory and market share; your company maybe trying to develop a mature sales force, thus a comparsion of our "bonus structure" against yours might not generate the right incentives. Good Luck!