What Are Holdback Periods in Sales Commission Plans?
Sales reps close a deal, and their commission check arrives. When only 80% of it shows up, and somebody in finance mentions something called a “holdback period,” that rep is going to want answers about where the rest of their money went and when they’ll actually see it. What reps earn versus what they take […]
What’s The Difference in Sales Compensation Threshold vs Gate?
Sales quotas and commission gates are compensation mechanisms that can seem pretty similar the first time you compare them, so any uncertainty between the two makes plenty of sense. These tools look like they accomplish almost the same purpose, and each one acts as a checkpoint that determines if the money flows to your sales […]
How to Handle Clawbacks in Sales Compensation Plans
Clawbacks are a topic that creates division in just about any company. Finance teams love them because they protect the business from taking a loss. Sales reps hate them. A clawback happens when a company takes back commission money that was already paid out to a sales rep. This happens when a customer cancels their […]
Do Monthly or Quarterly Spiffs Work Better for Sales Teams?
Sales performance data can be frustratingly stubborn when it doesn’t show what you want to see. Maybe you ran monthly spiffs last quarter, and they pushed your deals into these weird, unnatural cycles. The frequency of your sales incentives changes just about everything from the health of your pipeline to how much you spend on […]
The Pros and Cons of Incentive Trips for Sales Teams
In our experience, travel rewards usually work when you want to improve your sales team’s performance. When you plan out these trips, you’ll probably see some great results – businesses that use travel incentives consistently see their sales increase by about 18% and get more than double their money back on the investment. These experiences […]
What Are The Different Types of Sales Incentive Structures?
Money conversations motivate your sales team. A well-placed incentive structure can get your team fired up to close more deals and crush their targets! You’ll see the results in your revenue and team morale. Your sales reps want clear and easy goals with rewards that match their effort. Commission structures light a fire under your […]
What is ASC 606 and How Does It Affect Sales Compensation?
ASC 606 is a set of rules that have changed how companies report earnings. It affects even the sales department, changing how they figure out bonuses. Companies now have to change their technique to recognize earnings. I’m talking about a small change but an important shift that plays into how they predict their earnings and […]
Sales Commission Spreadsheets: Efficacy, Templates & Alternatives
Do you ever find yourself swamped by the difficulty of working out sales commissions with complicated spreadsheets? Don’t sweat it; it’s a problem lots of people face. In today’s fast-moving business world, old-school, error-filled spreadsheets just don’t cut it – especially for growing businesses. As your company expands, so does the difficulty of calculating sales commissions; it’s […]
Solving Retail Slumps: Incentive Programs as Sales Catalysts
The world of retail can be complex, with many factors at play, including the likes of online competition and the shifting preferences of customers. What was once a thriving business can quickly hit a phase of poor sales, or what we often call a “slump.” This might be a hard pill to swallow, but downturns […]
What is an MBO Bonus, and How Can It Improve Sales Performance?
Sales managers always search for new and innovative ways to motivate their teams. While one of the most obvious ways to incentivize salespeople is by rewarding them for reaching specific sales targets, this isn’t always the best option. One alternative to traditional incentive plans is offering MBO bonuses. These can be particularly useful when you […]