How to Make Your Sales Compensation More Effective

About this Video

• Video Title: How to Make Your Sales Compensation More Effective
• Channel: Pricefx
• Speakers: Billy Graham
• Duration: 00:06:11

Introduction

This video from Pricefx explains how to improve the effectiveness of sales compensation plans in B2B organizations. It focuses on aligning different departments (marketing, sales, finance, pricing), increasing plan flexibility and real-time visibility, and considering the bigger picture of company-wide strategic goals.

Key Takeaways

• Align Departments: Ensure marketing, sales, finance, and pricing teams are aligned on goals and strategies for a unified approach to sales compensation.
• Flexibility and Visibility: Create flexible compensation plans adaptable to changing market conditions, and provide salespeople with real-time visibility into their potential commissions at various price points and deal terms.
• Big Picture Thinking: Integrate sales compensation strategies with overall company objectives. Collaboration between sales, pricing, and operations leaders is crucial to ensure incentives drive the right product sales and long-term strategic results.
• Utilize Effective Systems: Implement systems and tools (potentially a comprehensive sales performance management solution) to manage compensation, track progress, handle disputes, and maintain a single source of truth for all stakeholders. This improves transparency and reduces reliance on emails and spreadsheets.