Drive results

The purpose of a sales compensation plan is to encourage positive behaviors across your team, set expectations and standards for compensation for all salespeople, and drive results to achieve overall team and organizational goals.

Creating a sales compensation plan has additional benefits.

Sales compensation plans create structure within the team.

Sales teams are known for their high turnover. The stresses of selling to uninterested prospects and the general lack of advancement opportunities can make even the most seasoned of salespeople hop from team to team.

One way to lower turnover is to create a sales compensation plan that adds structure to the team, differentiating between junior, mid-level, and senior reps. In doing so, you’ll communicate to the reps that there are advancement opportunities within the team, and they won’t feel like they should leave.

Our friends over at HubSpot have created a great template of how to calculate your total sales compensation for your team. We encourage you to check it out for great resource as you dip your toes in.

Bullitt’s 4 TENANTS OF sALES COMPENSATION

1. Is the plan simple and achievable?
2. There should be no cap to variable compensation.
3. Is everyone aligned to the compensation plan strategically?
4. Marketing Ops and Sales should be aligned.

Remember, no sales compensation plan is perfect — your priorities are constantly shifting, your reps are always looking for new loopholes, and your prospects are periodically changing their preferences. Follow our Bullitt Proof plan and develop a sales compensation strategy to fit your specific business needs and resources to help drive your bottom-line success.