When designing a sales commission plan, you need to take into account your expected cost of sales as a percentage of the total revenue. The cost of sales has two parts, a fixed component (salaries, benefits, car allowances, etc.) and a variable component (commissions, awards, bonuses, etc.). The graphic below shows sales commissions as a […]
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A Tale of Two Sales Teams
Posted by David Wallace on January 22, 2020
The CEOs of two different companies recently asked for my help. They have similar challenges, how to grow their revenue and market share, but from different perspectives. Company 1 delivers high-quality products to nationally known customers. They’ve grown their business by growing their customers and expanding their footprint across their customers’ business lines. Their customer […]
Read MoreElement 8: Leverage Your Tool Set
Posted by David Wallace on January 21, 2020
As you build your sales organization, develop strategies and execute your plans, you amass a lot of data. This data can provide valuable insights to your business if you use available tools to turn the data into usable information. Today’s sales leaders leverage the full range of tools available to them to turn data into […]
Read MoreElement 7: Coordinate with the Rest of Your Business
Posted by David Wallace on January 21, 2020
Truly effective sales leaders work with their counterparts in all parts of the company – marketing, finance, operations, manufacturing, supply chain/procurement, and human resources. Executives leading these functions all depend on accurate and timely information from the sales manager. In turn, sales reps are also dependent on these functional areas to keep their commitments to […]
Read MoreElement 6: Drive Specific Performance
Posted by David Wallace on December 19, 2019
Effective sales managers motivate their sales team to achieve higher performance levels that are specific to strategic success. They often employ three tactics: clear communication of expectations and strategy, incentive compensation and non-monetary incentive programs. Clear communications — If you clearly identify a goal and lay out a strategy or path to the goal, your sales […]
Read MoreElement 5: Develop and Manage Your People
Posted by David Wallace on December 19, 2019
It’s not enough to simply hire good sales representatives. You need to manage them to ensure they are working toward your goals and executing your strategy. Left to their own devices, even the best sales representatives will put their own interests first which may, or may not, coincide with your strategic goals. Training is also […]
Read MoreElement 4: Build Your Team
Posted by David Wallace on December 19, 2019
To execute your strategic plan successfully, you need to have the right resources and talent in place, from sales leader to sales reps, marketers and channel partners. Your sales leader sets and executes your market strategy and drives revenue to achieve your company’s goals. This leader is also responsible for the day-to-day leadership of your […]
Read MoreElement 3: Build Your Plans
Posted by David Wallace on December 19, 2019
A business plan is a road map that defines how your company will achieve its commercial goals. It considers the resources, opportunities, limitations and challenges the company faces. The plan includes actions, time frames and accountability to complete the actions. Most importantly, your business plan should be dynamic and flexible to adapt to changing market […]
Read MoreElement 1: Establish Your Foundation
Posted by David Wallace on December 19, 2019
Every successful organization is built on a firm foundation. Sales are no different. The basic building blocks of an effective sales organization are well-defined goals and a clear strategy to achieve those goals. Goals define where you are going. Strategy tells you how to get there. Goals Goals should be clearly defined and communicated to […]
Read MoreElement 2: Create Your Sales Organization
Posted by David Wallace on November 20, 2019
There are 8 Elements of Effective Sales Management Element 2: Create Your Sales Organization How you define your sales organization depends on your strategy – what you’re selling, where your target market is, who you’re selling to, and how you plan to reach your market. You may need an inside sales organization that focuses on lead […]
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