No “Compensation Plan” is forever, but one should build and change them with extraordinary care.
“Compensation Plans can be simple or complicated in design, but must always be built to help motivate and support real people to grow their results and earnings”
At Global Direct Partners, we work with the rewards programs supporting Affiliate Marketers, Direct Sales Companies, and other organizations to help plan and structure rewards programs to maximize their value to both the business and to the sales teams.
We always begin with fact finding and interviewing the program stakeholders to understand the goals in the context of what the numbers for the business will allow.
Additionally, while compensation plans need to be created and adjusted our experience has shown that often there are generally other sales behavior drivers that must be addressed at the same time.
For example companies that have not adjusted to the social media business drivers, the post-pandemic sales, marketing, technology realities, or the wild growth of affiliate marketing for sales and not just PR are way behind and must go beyond simple comp plan changes.
No company has ever simply added a few percentage points to their commission and turned on their growth engine.
All compensation plans must take into account:
Desired behaviors by the sales team
Product line composition
Price point and margin of products
Goals and drivers of the sales force (now and where it should go)
Clear identification of what is and what is not working
One cannot just add to a compensation plan, some elements that are failing must be removed even if at first it is painful.
Communication of the plan by the business
Emotional drivers of the plan
Roll of Sales Leaders in communicating changes
Collateral programs that can help accelerate sales and adoption of the sales rewards program.
When building or updating your compensation plan with Global Direct partners you will be able to:
Know what behavior each element of the Rewards Plan is meant to support.
What activities and supporting activities need to be measured.
Targeted payout amounts for the elements of the plan and how they should shift over time.
Confidently involve sales leaders in the roll out process.
Know how to tune the program in the future.