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3 tips for sales compensation programs that work for everyone

By April 1, 2013June 11th, 2024No Comments

One sure way to get the most from a salesforce is to create sales compensation programs that work to incentivize sales reps to go that extra mile. Such strategies not only bring in better sales numbers for the company, but also keep the sales team motivated and aware that a bonus awaits them if they do a good job. But businesses are faced with a dilemma when deciding how to go about formulating such a plan and what reward should be offered. While it seems like a daunting task, there are a few simple elements to a good compensation program every firm should consider implementing. Keep the all-stars in mind Businesses depend on the top performers to not only prop up the entire team, but also lead by example. That’s a lot to put on one person’s plate, but the best members of the sales team usually relish the chance to prove themselves and do good for the company. As such, it’s worthwhile to consider paying higher commission percentages for those who go above and beyond the call of duty. Sales compensation software can help accomplish this by setting thresholds on quotas. If someone surpasses $150,000, for example, then the commission rate gets a percentage point bump, providing top performers with the rewards they deserve and continuous incentives for others to better themselves. Teamwide bonuses help everyone Another way to motivate your entire team to achieve all that they can is by creating certain team-based compensations that reward not just one individual, but the whole squad. It helps foster a more inclusive atmosphere and lets employees know that their own personal efforts and work are appreciated. Contest incentives rally the troops In order to keep the sales team energized, one exceptional tactic to improve incentive performance management is offering contests. Having add-on contest incentives that reward reps for sales on new products or reviving lost contacts or leads are both great examples of this. Besides motivating employees to do better, it will also help enhance company culture and keep the sales team on their toes.

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Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

Harbert Management Corporation

Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

KBH Ventures

KBH Ventures was an early investor in Iconixx Software. KBH's investment philosophy plays a significant role in the firm's successful track record. KBH believes in running businesses to be cashflow positive and profitable every month. Startups and companies in a startup mode, such as one that has been purchased in distress, are expected to generate revenue within the first six months and reach profitability within the first 12 to 18 months. KBH also only invests in or acquires companies that are in the startup phase or have less than $20 million in revenues. KBH targets technology companies that offer business-to-business services.

S3 Ventures

S3 Ventures is an early expansion and growth stage venture firm with $200 million under management. It’s focused on information technology solutions that solve large business problems. S3 also invests in medical devices that improve the human condition. S3 invests in category-defining opportunities. It partners with the team and help focus methodically on what it takes to build a successful company. S3 today helps talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. Investment sizes start at several million or more for Series A, B, and C financing.