A Simple Way to Reward Reps for Winning Deals

by Chris Cabrera

Do your sales reps know what they’ll be paid on the huge deals they closed yesterday, or last week, or last month?

Is it hard for them to focus if they don’t?

Salespeople love to compete — and they also love to track their winnings.

Sales leaders need to help reps know what they’ll be bringing home. They need to know it so they can plan their lives. They also need to know it so they can feel like winners.

When commissions are your incentive to do well, paychecks become attaboys. It is a basic way management communicates success to them.

Without the feedback that incentive plans and commission checks provide, they are selling in the dark.  When companies keep incentive information tucked away in complicated, private spreadsheets, it’s hard for sales people to know what deal is a winner and what deal isn’t. When paychecks are late — or, worse yet, incorrect — you’ve just lost a major opportunity to keep your team highly motivated.

Here’s what one company, Zuora, told us they’ve done to improve motivation. (You can get the full story later this month during my presentation at the Sales & Marketing 2.0 Conference in San Francisco.)

  1. Make quota attainment data available. This helps people track success. If they know how close they are to rewards, they’ll work hard to reach their goals.
  2. Have transparent payout information. Salespeople shouldn’t worry if last week’s deal will be in their paycheck or not. If they can see the deal is credited toward their payouts, they can focus on the next one. According to Zuora, it’s a “dispute killer.”
  3. Make changes easy. Motivating salespeople the right way means having plans that reward profitable behavior. Zuora quickly implements special bonuses and other incentives to spur performance.

To hear the whole story, register now to join me at the Sales & Marketing 2.0 Conference on October 22 and 23 in San Francisco.

Chris Cabrera is CEO of Xactly Corporation and a frequent speaker at Sales 2.0 Events.

 

 

About Lisa

Editorial Director at SellingPower.com.
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One Response to A Simple Way to Reward Reps for Winning Deals

  1. Kathy says:

    Excellent! I love the comment on transparency and rewarding profitability. Many companies make their comp plans so complicated you need a math degree to decipher

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