Inside sales performance of most companies has seen the bad side of business since most business firms or companies has maintained old sales compensation plans. These plans or programs were put in place by the companies' predecessors for whom it worked. outsourced inside sales The problem lies squarely on the shoulders of the companies' management since proper strategizing has been slowed down.
Straight commission programs have been the root cause of all sales performance mayhem. Most companies have opted for 100 percent commission payment for their sales personnel. This has caused a wave of reluctance since all these people have lost direct ability and willingness of achievement. They are satisfied with the status quo and are content with their position and income.
For an inside sales compensation to be attained it is wise that the straight commission be abolished. New commissions should be set in place to ensure that the status quo of the sales personnel is washed down the drain. They have to set their pace high in order to increase sales and also their own commission for that matter.
Maintenance of the right sales people should also be a frequent decision. This will help in eliminating laid back personnel and new replacements and committed sales people. The right sales people will also agree to commission they are awarded and work towards better pay and company progress. The comfort zone should be completely eliminated.
Review your compensation program to ensure that it matches your corporate strategy. Most inside sales compensation plans work against effective corporate strategy because they encourage their sales personnel to do what is easiest. This means that all they have to do is select the easiest item to sell and sell the most to the people that like them best. However, this kind of strategy does not often suit the companies' best interest since their main aim is to get all items sold regardless of their favoritism to people in the market.
Strategic planning entails that you educate your sales people on the best practices regarding their job. Compensating them is only half the solution to the problem. Better motivation schemes would push these sales personnel to high sales performance. Inside sales compensation should be based on sales performance skills by individuals or group according to the sales job distribution.
Inside sales compensation is becoming a challenge for many companies since their profit may not be satisfactory and there is constant competition on their business ground. A well organized compensation plan may work well to help rectify this. Compensation plans should not be considered as sympathy for sales people after a hard day's work but payment for a job well done.
