In the incentive program, the most popular and effective way of paying rewards to sales reps is monetary benefits. This is paid based on the incentive scheme designed. It is always recommended to develop the incentive plan on performance basis instead of making it conditional. Conditional schemes enable sales reps to enjoy incentives only if they achieve the sales quota given by the management. However, expert suggestion is that by making it on performance basis, as an employer you can get better return out of your representatives. Obviously, your company needs a minimum sale from a representative which is often called as obligatory target.
Therefore, based on this obligatory target you can initiate your incentive plan from a lower slab to a relatively higher slab which will continuously poke them to reach the next level. For example, if the obligatory collection target of premium is $10000 and overall quota is $15000, format the incentive scheme from the slab of achieving $12000. In order to make them jump start, design the structure as 0.5% on $12,000; 1.5% on $13,000; 3% on $14,000 and 5% on quota. With this structure, they will be always on their toes to reach the next level to earn relatively more bucks or benefits. It is entirely your decision, how you are setting your incentive plan, however, this must be down-to-earth and welcoming to your representatives. They should not feel that, the scheme is made just to make them sale.
According to expert sales force management consultants like Mark Stiffler that in course of the hiring process of sales people, candidates who’re more interested to go for flat payment rate rather than taking part in sales incentive programs, you can take it granted that they’re lacking confidence on their selling skill and also, they’re not ready to work hard. Successful sales reps will love accepting great sales incentive schemes because they want to excel, achieve and want to be rewarded. The popular methods of paying rewards or incentives are monetary and non-monetary.
Monetary benefits refers to cash rewards which is most sought after. However, most business houses typically customize their incentive schemes in varied ways. For non-monetary plans, companies often reward sponsored vacations with complete package tour offers, gym membership or discount cards and more.
Apart from monetary or non-monetary rewards, never forget to pay recognition to your achievers by formal approval. For example in the sales conference ‘patting on one’s shoulder’ or appreciating someone’s great achievement or the team can gear them up in a different way. Mark Stiffler , at present the president of Optymyze, a enterprise cloud solution provider to drive sales people and founder of Synygy, a global consultancy house focused on sales force management advisory services says that employers should also recognize failures of candidates due to unexpected order loss or unintentional low performance. Acknowledgment of people who put their best efforts, even backed by a small reward and words of appreciation of their best efforts can make them excelling in the next session.