Josh Melick – Exploring The Reasons Behind a Sales Comp Plan

Something which so many businesses are well aware of is the need to have a sales comp plan. Indeed for those who are in the process of creating their very first sales comp plan, the recent article from Josh Melick would be a great point of access for them. Josh details in his piece exactly what should go into a sales com plan in order for it to be successful. Throughout the piece Josh also discusses how so many get it wrong, doing things such as not paying on time, failing to have separate plans for trainees and the importance of accelerated levels for high sellers.

To further highlight the importance of a sales comp plan, here is exactly why it is critical that all sales-based businesses have one in place, and what companies can expect when they do.

Incentive The Staff to Sell More

The nuts and bolts of any sales comp plan is to encourage the staff to sell more of the product or service which they have been asked to. This is the most basic reason for the plan and it is our way of driving our sellers to work hard and sell better with the tools that they have. Naturally if you have sales teams which are selling hard, that means that the company will make more money by way of revenue and thus profits.

Content Workforce

It is also critical that you have a workforce which is happy and working in sync with one another. The main threat which businesses face if they do not have a happy workforce is that they will end up with low levels of productivity. What a sales team should have in place are clear targets, a desire to achieve them based on the knowledge that if they do, they can expect to earn more money each and every month. Even if you have a great sales structure in place, if you fail to pay the staff when you should, you are going to have an unhappy workforce on your hands, which isn’t good for anyone.

Retaining The Best Talent

The reason why Josh mentioned the accelerated programs in his blog post is that we have to do all that we can to take care of and drive the most talented sales reps in our teams. This will not only help them and the company to make more money, but it will assist in retaining those staff members. No team can afford to lose talented individuals but if they can get a better deal elsewhere, then that is where they will be going. A high quality and well structured sales comp plan will help your company to retain more high quality staff than it loses.

These are the fundamental reasons why these plans exist, and why it is so important to pay attention to people like Josh, who understand perfectly how this can be executed to perfection.



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