Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs
Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs

Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs


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About the Book

Leverage the full power of your sales force with a cutting-edge compensation program  Salespeople are motivated by many things—and how they’re paid tops the list. Sales compensation is one of the best tools for motivating any sales force and thus maximizing business revenue. Do you have strategically aligned sales compensation plans or are your pay plans holding back your sales force?  Compensating the Sales Force has helped thousands of business leaders worldwide create sales compensation programs that drive sales performance, increase revenue, and trigger business growth. Now, this new edition brings you fully up to date with new approaches for a business landscape where product/solution objectives and customer needs are in constant in flux.  Sales guru David Cichelli provides everything you need to build an incentive plan that delivers real financial results. He takes you step-by-step through the process of setting target pay, selecting the right performance measures, and establishing quotas. You’ll learn everything there is to know about:  •Why job content drives sales compensation design •Methods for calculating formulas for payout purposes •The roles of quota allocation, sales crediting, and account assignment  •Compensating a complex sales organization and global sales teams •Administering, monitoring, and measuring the effectiveness of the program An indispensable resource for anyone involved in sales compensation—from CEOs and sales managers to HR personnel to IT professionals—Compensating the Sales Force provides all the tools you need to design and implement a sales compensation plan that increases profits―and drives the sales team to exceed sales targets. 

Table of Contents:
Acknowledgments  Preface  Introduction  1. Why Sales Compensation?  The Role of the Sales Force  Why Sales Compensation Works  The Power of Sales Compensation  Job Content—The Source of Sales Compensation Design  Sales Jobs and Sales Process  Sales Compensation—Paying for the Point of Persuasion  Sales Force Obsolescence and Sales Compensation  The Impact of Customer Relationship Management  What Can Go Wrong? Summary  2. Sales Compensation Fundamentals  Variable Compensation Models  Income Producers versus Sales Representatives  About Sales Compensation Concepts  Sales Compensation Design Elements for Sales Representatives  Eligibility  Target Total Cash Compensation  Pay Mix and Leverage  Performance Measures and Weights  Quota Distribution  Performance Range  Performance and Payment Periods  Summary  3. Who Own Sales Compensation?  Sales Compensation Program Ownership  Program Accountabilities Assignment of Program Accountabilities—Large Sales Organizations  Using Committees  Sales Compensation—The Process Manager  Summary  4. Why Job Content Drives Sales Compensation Design  Job Content Drives Sales Compensation Design  Sales Job Components  Sales Job Type Inventory  Job Levels  Job Design Errors  Sales Compensation Practices by Job Types  Summary  5. Formula Types  Types of Plans  Illustrating Formula Payouts with Sales Compensation Formula Graphs  Unit Rate Plans  Target Pay Incentive Plans: Commission versus Bonus  Target Incentive Plans: Commission Formula  About Link Designs  Bonus Formula: Providing Equal Earning Opportunities When Territories Are Dissimilar in Size  Target Bonus Plans  Bonus—Calculation Basis  Special Designs Add-On Plans  Base Salaries  Summary  6. Formula Construction  Fundamentals of Sales Compensation Formulas  The Economics of Income Producers  Advanced Thinking about Income Producer Commission Rates  Constructing Sales Representative Formula  Formula Construction Worksheets  Summary  7. Plan Cost Modeling  Modeling Objectives Successful Plan Modeling Steps Summary 8. Support Programs: Territories, Quotas, and Crediting   Territory Configuration   Quota Management Sales Crediting Summary 9. Employment Status and Pay Implications   New Hires   Lateral Transfers Promotions Involuntary Terminations Resignations Leave of Absence Vacation Treatment Temporarily Assigned Accounts Summary 10. Difficult-to-Compensate Sales Jobs   Channel Sales Representative Long Sales Cycle Mega-Order Seller Business Development Specification Seller Strategic Account Manager Pursuit Team New Account Seller Account Manager Overlay Specialist New Hire Branch Manager House Account Manager Sell and Deliver Service Providers Merchandiser Summary    11. Small Companies, Big Companies—Sales Compensation Solutions  Does Company Size Affect Sales Compensation?   Small Business, Small Sales Force Fast-Growing Start-Up Companies Cottage-Style Growth Companies Large Companies Summary 12. Compensating the Complex Sales Organization   Examples of Complex Sales Organizations   Challenges for Sales Compensation Preferred Sales Compensation Outcomes Sales Compensation Rules for Complex Sales Entities Summary 13. Global Sales Compensation   The Philosophy of Internationalism versus Globalism Sales Compensation—A Local Solution Global Trigger Conditions Global Sales Compensation Solutions Trends in Global Sales Compensation Practices Summary 14. Administration   Administration Components   How to Avoid Unnecessary Administrative Burdens Summary 15. Implementation and Communication    Implementation   Communication Summary 16. Program Assessment     Strategic Alignment Employee Motivation Best- Practice Variance Return on Investment Program Management Summary 17. Sales Compensation Design     The Sales Compensation Design Process 10 Steps to Sales Compensation Design Summary Closing Notes  Appendix A: Sales Compensation Design Principles  Appendix B: Sample Sales Compensation Plan  Appendix C: Sales Compensation Survey Companies Appendix D: Sales Compensation Administration Software Vendors  Index     

About the Author :
McGraw-Hill authors represent the leading experts in their fields and are dedicated to improving the lives, careers, and interests of readers worldwide


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Product Details
  • ISBN-13: 9781260026818
  • Publisher: McGraw-Hill Education
  • Publisher Imprint: Mcgraw-Hill Education
  • Height: 224 mm
  • No of Pages: 352
  • Spine Width: 28 mm
  • Width: 168 mm
  • ISBN-10: 1260026817
  • Publisher Date: 02 Dec 2017
  • Binding: Hardback
  • Language: English
  • Returnable: N
  • Weight: 644 gr


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Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs
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