Comments on: A Sales Compensation Problem Looking for a Solution http://spurspectives.com/a-sales-compensation-problem-looking-for-a-solution/ Thoughts on the intersection of social media and 1:1 marketing Thu, 17 May 2012 12:07:47 +0000 http://wordpress.org/?v=2.5.1 By: David Svet http://spurspectives.com/a-sales-compensation-problem-looking-for-a-solution/#comment-9095 David Svet Fri, 16 Apr 2010 15:23:44 +0000 http://spurspectives.com/?p=213#comment-9095 Jon, Good point! Got to keep the "butterfly" in the cabbage! :) Got some clarification on the situation. They don't have a new rep using social media, they set up a corporate account and it is attracting sales. I think they should direct prospects to their respective rep for follow up in closing the sale. They should also have every one of their reps create accounts and learn to use social media immediately! They seem to have a golden opportunity. Jon, Good point! Got to keep the “butterfly” in the cabbage! :)

Got some clarification on the situation. They don’t have a new rep using social media, they set up a corporate account and it is attracting sales. I think they should direct prospects to their respective rep for follow up in closing the sale. They should also have every one of their reps create accounts and learn to use social media immediately! They seem to have a golden opportunity.

]]> By: David Svet http://spurspectives.com/a-sales-compensation-problem-looking-for-a-solution/#comment-9094 David Svet Fri, 16 Apr 2010 15:20:28 +0000 http://spurspectives.com/?p=213#comment-9094 Alan, I appreciate your input. Named accounts sounds like it might work for them, particularly with social media referrals. Alan, I appreciate your input. Named accounts sounds like it might work for them, particularly with social media referrals.

]]> By: Jon Aston http://spurspectives.com/a-sales-compensation-problem-looking-for-a-solution/#comment-9090 Jon Aston Fri, 16 Apr 2010 11:37:01 +0000 http://spurspectives.com/?p=213#comment-9090 Hi David! Why doesn't your client offer to pay the "social butterfly" to develop and execute a program for training his/her colleagues to do the same? Once they're all on more-or-less an even playing field, it should be easy for him/her to say "Where are you from?" to a prospect, then "Let me introduce you to my pal @ChetYoubetchya, who is our rep in your area". Make sense? Hi David!

Why doesn’t your client offer to pay the “social butterfly” to develop and execute a program for training his/her colleagues to do the same? Once they’re all on more-or-less an even playing field, it should be easy for him/her to say “Where are you from?” to a prospect, then “Let me introduce you to my pal @ChetYoubetchya, who is our rep in your area”.

Make sense?

]]> By: Barbara Zeigler http://spurspectives.com/a-sales-compensation-problem-looking-for-a-solution/#comment-9055 Barbara Zeigler Wed, 14 Apr 2010 23:09:31 +0000 http://spurspectives.com/?p=213#comment-9055 Thorny sales compensation problem It seems like this will be relevant for many successful businesses as they add social media to their marketing mix.… especially those companies using independent reps. Challenges around mixing something “new” with something “old” have been around for a long time. Has anyone seen any general guidelines that we could apply to social media and commissions based on territories? Thorny sales compensation problem
It seems like this will be relevant for many successful businesses as they add social media to their marketing mix.… especially those companies using independent reps. Challenges around mixing something “new” with something “old” have been around for a long time. Has anyone seen any general guidelines that we could apply to social media and commissions based on territories?

]]> By: Alan Rigg http://spurspectives.com/a-sales-compensation-problem-looking-for-a-solution/#comment-9019 Alan Rigg Wed, 14 Apr 2010 15:23:04 +0000 http://spurspectives.com/?p=213#comment-9019 I agree with the previous respondent. My preference is for accounts to be assigned on a "named account" basis rather than a territory basis. In order for a salesperson to have an account assigned they have to be able to prove the activity they have under way in the account. I prefer this approach because it enables salespeople to follow referrals (the pursuit of which I recommend as a key pillar of any sales culture) wherever they lead them. This would pertain equally well to sales opportunities generated via social networking. I agree with the previous respondent. My preference is for accounts to be assigned on a “named account” basis rather than a territory basis. In order for a salesperson to have an account assigned they have to be able to prove the activity they have under way in the account. I prefer this approach because it enables salespeople to follow referrals (the pursuit of which I recommend as a key pillar of any sales culture) wherever they lead them. This would pertain equally well to sales opportunities generated via social networking.

]]> By: David Svet http://spurspectives.com/a-sales-compensation-problem-looking-for-a-solution/#comment-9018 David Svet Wed, 14 Apr 2010 15:22:56 +0000 http://spurspectives.com/?p=213#comment-9018 Thanks Keenan! Great insight. I'll see if I can get answers to your questions. I think the owner realizes the new guy is on to something and wants to make it work. You're right. Remove friction! Thanks Keenan! Great insight. I’ll see if I can get answers to your questions. I think the owner realizes the new guy is on to something and wants to make it work. You’re right. Remove friction!

]]> By: keenan http://spurspectives.com/a-sales-compensation-problem-looking-for-a-solution/#comment-9017 keenan Wed, 14 Apr 2010 15:09:56 +0000 http://spurspectives.com/?p=213#comment-9017 Need more info to be helpful, BUT a few questions. Why is a territory important? What are they selling? How are they compensated? Did the sales people have to "buy" their territories? How many sales people are there? How big are the territories? What is the average sale price? How long is the sales cycle? All of these questions would help provide a solution that would work for him. Barring having that info, my advice is; remove any friction to selling. If that means re-evaluating the territory model, because the business seems to respond well to social media, then do it. The key to sales is to create a structure, compensation model and process that removes as much friction as possible. The DON'T is: don't do ANYTHING that could frustrate the new guy for being creative and making things happen. He's onto something bottle it, DON'T impede it. Need more info to be helpful, BUT a few questions.

Why is a territory important?
What are they selling?
How are they compensated?
Did the sales people have to “buy” their territories?
How many sales people are there?
How big are the territories?
What is the average sale price?
How long is the sales cycle?

All of these questions would help provide a solution that would work for him.

Barring having that info, my advice is; remove any friction to selling. If that means re-evaluating the territory model, because the business seems to respond well to social media, then do it. The key to sales is to create a structure, compensation model and process that removes as much friction as possible.

The DON’T is: don’t do ANYTHING that could frustrate the new guy for being creative and making things happen. He’s onto something bottle it, DON’T impede it.

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