Are you struggling to create a sales compensation plan that aligns with your business goals and motivates your sales team? Look no further! In this episode of Two Tall Guys Talking Sales, hosts Kevin Lawson and Sean O’Shaughnessey dive deep into the intricacies of crafting effective sales compensation plans. With decades of experience in sales and management, Kevin and Sean share invaluable insights on how to set up your sales team for success. Whether you’re a startup aiming for your first million or an established business looking to optimize, this episode is a must-listen!
Key Topics Discussed
- The Importance of Timely Compensation Plans: Why releasing compensation plans in line with the fiscal year is crucial for sales teams.
- Simplicity is Key: The need for straightforward, easy-to-understand compensation plans.
- Aligning Compensation with Business Goals: How to incentivize behaviors that align with your company’s objectives.
- Understanding Costs and Profitability: The role of CEOs and CFOs in determining the budget for sales commissions.
- Attracting Talent with Compensation Plans: How a well-structured plan can be a recruitment tool for top sales talent.
Key Quotes
- Kevin Lawson: “Compensation plans are the bedrock for someone’s income. And we should treat it as such, not as a cost line.”
- Sean O’Shaughnessey: “The magic of writing a great compensation plan is to make sure that you maximize the things that you want to maximize to grow your business within that budget that you put together.”
Additional Resources
- Management by Objective (MBO): A management model for setting and tracking objectives. https://www.investopedia.com/terms/m/management-by-objectives.asp
- EOS (Entrepreneurial Operating System): A set of simple concepts and practical tools to help entrepreneurs get what they want from their businesses. https://www.eosworldwide.com/
Summary
Don’t miss out on this episode if you want to revamp or create a sales compensation plan that works. Kevin and Sean offer a comprehensive guide that covers everything from the timing of releasing plans to aligning them with your business goals. Tune in to Two Tall Guys Talking Sales and equip yourself with the knowledge to build a compensation plan that retains and attracts top sales talent. Start setting your sales team—and your business—up for success today!