When creating sales compensation plans, once your startup has completed the design phase, it is time to focus on the employees who will participate in the plans. As with any program, the communication aspects can make or break you.
The implementation of sales compensation plans requires attention to detail at all levels, including the documentation and training that you provide.
To complete the process of establishing your sales program, incorporate an evaluation process that is thorough and includes all members of your sales team.
Once your sales compensation plans have been designed, create a sales contract for each eligible employee. The documentation package you provide to each salesperson should include the following:
Communicate the plan at both a team and individual level. At the team level, review and highlight the overall design of the plan. At the individual level, review and explain the specifics of each sales contract and secure signatures.
At a minimum, your startup should evaluate its compensation plan every year (and possibly more often, given the nimble environment of a startup) to make sure it continues to work as desired. Your goal is to ensure all parties—the customer, the company, and the employee—are getting the value they expect and that the plan continues to evolve with your business strategy.
To evaluate a sales compensation plan:
For more information on sales compensation plans, see: