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
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:
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
to assist software and IT services firms in putting together a solid software sales commission plan. Please
send an email to firstname.lastname@example.org
if you would like to know more.