How do you know that it is time for a change in your sales commission plan?

Sales commission plan

Awarding a sales commission, better known as SPIFF incentive in the corporate world, to the sales representatives is a general practice exercised by companies. Companies assign their sales reps a certain sales quota, target or a goal which the reps must achieve within the specified period of time. On successful attainment of the very assigned quota, the reps are further awarded a certain cut for their contribution towards the growth of the company. The main motive behind handing out these sales commissions is to acknowledge the efforts made by the reps and motivate them to work harder on their next target. Everybody likes to be rewarded for their valuable efforts and when you actually receive a reward it does give you immense pleasure and further motivates you to put in more effort. It also motivates the reps to work on their competency towards their work.

How is the sales commission rewarded?

Based upon a certain predefined constraint, the commission is awarded to the reps. These constraints are a set of criteria called the sales commission plan which are made with the simple facts in mind that the reps on achieving their assigned sales targets must be duly rewarded. 

Earlier, the conventional way of making this sales commission plan was to use a sales commission calculation spreadsheet and make the plan manually, which undoubtedly was very hectic, time taking, cost consuming and very much came in the way of the growth of the employees.

What are the loopholes of using manual commission planning?

Manual sales commission planning involved consistent upgradation of data i.e new entries were to be made in the spreadsheets every now and then, which undoubtedly is prone to miscalculations and errors in the sheets. Let’s throw some light on how manual commission planning is problematic:

  1. Since it is being operated manually, it will demand an individual to modify the data every now and then. The very individual who could have contributed his manpower in other complex jobs, now has to stick to the job of entering new data in the sheets. Apparently, this would not be a judicious utilisation of the human resource available with any certain company. (
  2. Since everything is being coordinated manually, it is needless to mention that miscalculation and inaccuracies would be a common problem henceforth faced by the company. 
  3. The formula on which the plan is based and has been drafted, cannot necessarily be applied to all sorts of circumstances, thereby making it inflexible. A new plan might be needed to be drafted as soon as possible thereby increasing the complexities of the planners and reducing their productivity.

All the above-mentioned problems, if faced by any specific company, can be resolved by just taking a simple but revolutionary measure, which is to digitise the commission planning. If you see that your business faces any or all of the aforementioned problems, well, then it is high time you consider a change in commission planning for your business. Yes, you heard that right, there are many software companies out there in the open market willing to take up the responsibility to design an effective sales commission plan for your business. They use a certain software, designed exclusively to draft a plan for your business which would resolve all your problems and help you make effective sales commission plans.

Among all other such companies, one of the most trusted and renowned companies is ElevateHQ which offers real time exposure, flexibility, ease of operation and much more facilities. ElevateHQ offers facilities and services unlike any other organisation out there.

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