Sales compensation can be a tricky affair to master. Any plan should answer these basic questions:
- What’s your overall goal?
- What is working and not working about the current plan?
- What do you need to eliminate or improve and what should you exploit further?
- Who is involved in designing the plan? Who can impact the plan and how will they be treated?
- What math will you use to establish a base salary, commission, bonus, any caps on income, frequency requirements, etc. – a percentage of what, when, how, where, etc.?
- How can you test the plan before you roll it out?
- Where can the plan be manipulated or even sabotaged?
- How does your plan compare to that of the competition?
- Who can review or provide a second look at your plan?