‘How to Align Sales Roles With Compensation Plans’ – HubSpot
Mark Donnolo says, “Organizations change, as do sales strategies. As those strategies are modified, sales roles either evolve or fail.
When companies grow from year to year, they don’t grow in a straight line. Typically, companies retain revenue from current customers, gain revenue when current customers purchase additional products or services, and add new customer revenue. The revenue type is important because it takes certain types of talent to procure certain types of revenue. Going after brand new customers — hunting them down — is a different talent and job than selling additional products to longtime customers.
Making certain the organization understands the sales roles guarantees a firm foundation on which to build a sales compensation plan. This is a fundamental concept, and yet it’s surprising how many times we walk into companies and find compensation plans are out of alignment with the strategy or the sales coverage model”.
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