Moe Revenue

Incenting the Incentive Plan

It is that time of year where CRO’s are developing sales quotas and incentive plans for next year.  I have an article up on Salesopedia.com that you can read as you prepare your 2010 plans.

Follow this link to read the article.

If you don’t have time to read the entire thing, here is one critical point to consider:

Sharpening CRO incentive plan tools starts with defining the sales compensation philosophy.  The general structure I recommend:

Recognize Effort = Base compensation

Reward Results = Incentive compensation

In Recognize Effort, I refer to compensation paid to the salesperson for executing the required sales behaviors: sourcing referral introductions, making cold calls, scheduling and attending appointments, qualifying prospects, submitting forecasts, providing proposals and quotes, attending trade shows, etc.  In essence, the salesperson’s engagement in the behaviors necessary to achieve sales goals.

By Reward Results, I mean the incentive paid to compensate those who translate their efforts into the company’s desired revenues.