Companies follow a general process of giving reps a certain cut from the gross sale they have made. They make a plan and act accordingly. A sales commission plan does this work for companies, there are different types of plans with different approaches, some offer upto 10% of the sales while some limit it to just 2% but irrespective of the amount, the prime objective behind providing a sales commission is to incentivise the efforts that reps put in.
How is a sales commission plan made?
Making a sales commission plan involves certain steps which need to be taken so as to make a successful plan.
- Analysis: A thorough analysis of how many reps the company has all over its offices to keep track of the sales they have made and how much they need to be paid.
- Survey: A survey of the satisfaction of the reps is also necessary to make sure that the cut which you are planning to provide them will satisfy them.
- Effective mapping of areas and assigning quotas to the reps.
- Data: Creating a plan with reference to an outdated data would be a mistake as it would not bring any good out of the plan. It would only end up being a great failure.
Earlier these plans were made and operated manually through spreadsheets. The data stored in the sheets demanded constant upgradation and frequent insertion of updated data.
It was quite the job to work on these sheets and there were several other challenges to this old conventional method of sales planning. Hence, came the era of sales management softwares. These are softwares that design a dedicated sales commission plan for businesses and help them make and track records of sales and then divide the cuts among the reps according to their eligibility. These softwares have eased the job and have eliminated all the difficulties which were earlier felt. Now, the plans can be made, updated and amended simply through fingertips. You must have heard about the software ElevateHQ which is well known in this industry for the full-fledged effective plans they provide.
There are many such software companies and websites you could pick from. One of the best software of this kind, that one could possibly think of, is the ElevateHQ which has set its foot in the industry and had left its imprint on it. ElevateHQ is the best software for sales commission planning, it offers a wide range of features and provides the best plan suitable for your business.
What are the major benefits of using commission management software?
Some of the most important benefits of this softwares are mentioned below. You can decipher how these softwares have made a difference in the planning process.
- Easy to operate
- Least expensive
- Does not require constant upgradation
- Total transparency
These softwares are also known for setting sales goals for the reps which are neither too hard for them to achieve nor too easy. They make sure that the goals they set for the reps lead to the productivity and profitability of both the company and the reps.