In a BLR webinar entitled "Sales Compensation Strategies: How to Motivate and Re-Energize Your Sales Staff in a Challenging Economy," Dan Kleinman, principal of Dan Kleinman Consulting, a compensation and human resource consulting firm, described the premise by which sales strategies can result in profitability: Alignment.
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- Alignment of costs paid with the value of results achieved
- Alignment of plan goals with costs required
- Alignment of payouts with corporate results
- Alignment of selling with company strategies
Profitability measures differentiate how you reward and pay for:
- Selling product mix
- Selling to the margin
- Lowering cost of sales
- Revenue received
In turn, profitability encourages selling smart:
- Selling a suite of products; relationship ties means less time spent on calls
- Focusing on key decision makers for faster, more comprehensive sales
- Rewarding less for discounted sales has a tremendous impact on net income.
- Rewarding for increased margin return
- Differentiating rewards for different products; one size does not fit all.
Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. For the past 18 years, he has served as an independent consultant for a broad spectrum of regional, national, and international companies, providing compensation, performance, organizational planning, and reward-system design services. He may be reached at info@dankleinmanconsulting.com