How to Set Up a Successful Software Commission Plan

What is the best software commission plan to drive the right behavior from your sales organization, presales support, channel partners and anyone else involved in the software sales process?

Go-to-Market Strategies' Commission Plan Template:
a timesaving tool to build your software commission plan.
DOWNLOAD NOW!

It is important that both your sales organizational structure and individual ownership/reward must be structured in a way that supports customer relationship building and selling with the right target customers.

Sales process is absolutely necessary to properly manage pipelines, but make sure it does not get in the way of your sales people doing their job, and make sure the software commission plans are rewarding the right behavior.

It is important also to remember that it is not only your sales people who are responsible for the sale. Especially with high-end software or a very technical product, the presales support or consulting staff (depending on your business) can be just as critical and you should consider them as part of your software sales commission plan also.

Developing a solid sales commission plan involves the following key steps:

  • What is the desired behavior(s) to be rewarded for each of the employee groups (ie, account execs, technical consultants, etc)?
  • What are the possible reward/commission options to encourage that behavior?
  • For each reward/commission option, what are the downsides (ie, might it unintentionally encourage other undesirable behavior, and/or distract the employee from other work tasks that may be relatively less commissioned)?
  • Does the reward/commission option encourage or discourage teamwork? Which is preferred?
  • Assess the different reward/commission options for each employee type & identify the best option
  • Pilot the reward/commission plan, and track actual behavior, results & compensation: make sure it is not inadvertently rewarding the wrong behaviors and is providing the right level of compensation as well as results.

Another timesaving tip is to start with a software commission plan template, such as this template you can download from Go-to-Market-Strategies. We have used the Go-to-Market-Strategies commission template in our own consulting services and found it to be an excellent starting point to help you quickly structure a strong plan. Built in MS Excel for easy editing, the template helps you establish your compensation model (pay mix, credit timing, quotas, leverage, variables/levels, and shortfalls/windfalls), and calculate your team's compensation plans at the monthly, quarterly, and annual levels. It also includes a commission calculator for easy calculation of commission earned based on actuals.

Software-Marketing-Advisor.com also provides consulting services to assist software and IT services firms in putting together a solid software sales commission plan. Please send an email to info@software-marketing-advisor.com if you would like to know more.

RETURN FROM SOFTWARE COMMISSION PLAN TO SOFTWARE SALES

RETURN TO SOFTWARE MARKETING HOMEPAGE


Contact Us:

Phone: 201-374-0790

Email: info@software-marketing-advisor.com

Or fill in the contact form - we'll get back to you within 24 hours.

Get Your Sales & Marketing Strategy Audit

Click here to sign up for our Sales & Marketing Strategy Audit service. We've got fantastic feedback from clients. We'll do a detailed review of your current sales & marketing, website, marketing materials, etc, and provide specific recommendations for improvement. Get Your Audit Now

Free eZine Signup

Your E-mail Address
Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you The Software Business Advisor.


Join the Software Marketing Tookit Member Program

Become a member and access all our resources and coaching for one low subscription!

Starts at $47/month. SIGN UP HERE!

Featured Downloads

SaaS Business Plan Template

A detailed business plan template for SaaS companies

Software Company Business Plan Template

An easy-to-use business plan template for software product companies

Software Marketing Plan Template

A time-saving marketing plan template designed specifically for software firms




Search this Site




Software Marketing Blog

Subscribe to RSS headline updates from:
Powered by FeedBurner