Transform Your Sales Team: Strategic Compensation Adjustments for Year-End Momentum

Transform Your Sales Team: Strategic Compensation Adjustments for Year-End Momentum

By Sean O'Shaughnessey

Autumn is the time of year for sales leaders, managers, and CEOs to begin laying the groundwork for next year’s success. Have you considered how your current sales compensation plans impact your team’s motivation and productivity? Now is the ideal moment to evaluate, adjust, and deliver these plans, preferably by December 1st. Doing so can significantly influence your team’s drive to close deals in December and build momentum heading into the next fiscal year.

Sales compensation should be motivating and rewarding for employees. It directly shapes your sales team’s behaviors and priorities. An effective plan incentivizes the right actions and deters the wrong ones.

Consider a common pitfall: salespeople holding back deals to inflate their numbers for the following year. Does your current compensation structure inadvertently reward this practice? If so, you’re unintentionally harming your year-end results.

To counter this, strategically incorporate compensation escalators and cliffs into your plan. Escalators progressively reward increased sales performance throughout the year. Higher performance equals higher commission rates, driving your sales team to push forward continually. 

Commission cliffs reset commission rates at the beginning of each year, creating a sense of urgency to close deals before the end of December. Communicating these compensation details clearly by early December ensures your team understands what’s at stake.

Don’t hold your team back!

Another critical compensation consideration is eliminating commission caps. While some organizations cap commissions to control expenses, this practice can backfire dramatically. Caps tell your top-performing salespeople that their exceptional efforts are neither valued nor rewarded appropriately. This demotivates your top talent and encourages them to seek opportunities elsewhere that offer uncapped rewards. 

Removing commission caps signals that the organization fully supports and rewards outstanding performance. Have you considered how much growth your company might achieve if artificial constraints didn’t limit your sales team?

When evaluating compensation, look beyond simple cost containment. Consider the true profitability of incentivizing increased sales volume. Once salespeople reach their targets and enter accelerators, each additional dollar earned typically comes at a lower incremental cost to your organization. 

Sales transactions earlier in the year have already covered the salesperson’s base salary once they have met their annual quota. In fact, at 100% of quota, the salesperson should have covered all their costs and their share of the overall company’s revenue needs. Thus, every extra sale at escalated commission rates still contributes positively to your overall profitability. 

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Hiring for Growth: How to Build a Sales Team That Drives Long-Term Success

Hiring for Growth: How to Build a Sales Team That Drives Long-Term Success

By Sean O'Shaughnessey

Building a successful sales team requires more than just filling open seats with available candidates. Company leadership must strategically align its hiring process with business objectives, market needs, and long-term goals. 

Whether you’re a solopreneur transitioning to a team-based approach or a CEO managing a growing sales force, the principles of intentional recruitment and onboarding remain the same. Hiring the right people is an investment in the future of your business.

One of the most common pitfalls in sales hiring is a lack of intentionality. Too often, small businesses hire out of convenience, choosing candidates from their immediate network or taking the first person who seems interested. While this approach may solve an immediate need, it rarely leads to long-term success. 

Hiring a salesperson means selecting someone who can actively drive growth and represent your brand with competence and integrity. The stakes are even higher when you’re working with a lean team; every hire matters, and mediocrity is not an option.

To avoid these missteps, it’s essential to approach hiring with the same rigor you apply to your sales process. Think of recruiting as a parallel to securing a high-value client. Just as you wouldn’t sell your product without qualifying leads or understanding their needs, you shouldn’t hire without a structured process to evaluate candidates. 

Begin by defining what success looks like for the role. What skills and attributes are non-negotiable? What specific outcomes do you expect this person to achieve within their first 90 days? A clear job description and measurable KPIs set the foundation for finding the right fit.

Cultural alignment is another critical factor. Your salespeople are the face of your business to prospects and customers. Their ability to embody your company’s values and mission can make or break the customer experience. A candidate might have a stellar track record, but if their approach clashes with your team’s culture, the partnership is unlikely to succeed. At the same time, skills and experience must align with the specific demands of the role. For instance, if your goal is aggressive market penetration, you need a hunter mentality, someone skilled in building relationships from scratch and closing deals in uncharted territory.

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Transforming Quota-Setting: Strategies for Sales Leaders to Optimize Performance and Revenue

Transforming Quota-Setting: Strategies for Sales Leaders to Optimize Performance and Revenue

By Sean O'Shaughnessey

Quota-setting is one of the most misunderstood elements of sales leadership. Too often, it’s treated as a spreadsheet exercise or a top-down directive, rather than a strategic lever that drives behavior, performance, and growth.

Whether you’re leading a team of 20 or you’re the founder managing three reps, how you define quotas has a direct impact on your revenue trajectory and your team’s motivation.

So, where do you start?

With timing. If you’re not delivering quotas to your team until February or March, you’re already behind. Salespeople need clarity by December. That gives them runway to plan, prioritize, and hit the ground running in January. Delayed quotas create confusion and stall momentum. To achieve a strong Q1, you need to equip your team early.

Quota-setting varies depending on the size of your company. Larger teams offer more flexibility. With 10 or more reps, you can spread risk, balance performance, and model averages. You’ll have top performers who consistently overdeliver, alongside newer reps who are still ramping up. The law of averages works in your favor. You can afford some variance. Smaller teams don’t have that luxury.

When you’re running a small team, maybe two or three reps or founder-led sales, every individual matters. One person missing quota can tank your number.

You can’t rely on averages. You need precision.

That means tying quotas to actual relationships, known opportunities, and real probability. It’s not about slicing up a target evenly. It’s about assigning numbers based on what’s realistically achievable in each territory or account list.

Territory design plays a big role here. Whether it’s geographic, vertical, or named accounts, quota must reflect the market potential. You can’t expect equal performance from unequal opportunity. If Rep A has 500 viable accounts and Rep B has 50, their quotas shouldn’t look the same unless you have data that says Rep B’s accounts are closer to your Ideal Client Profile. Use available market data to inform the number. Don’t assign quotas in a vacuum. 

In larger organizations, quotas often originate from the top down, typically from finance. The CEO and CFO commit a growth number to the board, investors, or in public filings to the SEC. They have no choice but to pass it down. It’s not uncommon for the sales team to receive the number without context. That’s a problem. If you’re in a leadership role, you need to pressure test that number. Can your team realistically hit it? If not, what additional resources are required?

  • More headcount?
  • Better enablement?
  • Marketing support?

In large organizations where the quota is driven by investor expectations, the VP of Sales must establish an organization well before the new year that achieves this year’s goal, while also meeting the expectation of growth for the next year. Planning ahead, sometimes years in advance, is part of the job.

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Two Tall Guys Talking Sales – Know Your Numbers: A Sales Leader’s Guide to Growth Metrics – E132

Two Tall Guys Talking Sales – Know Your Numbers: A Sales Leader’s Guide to Growth Metrics – E132

By Sean O'Shaughnessey

As Q2 kicks into full gear, it’s time to pause and reflect—are you ahead, on pace, or falling behind on your sales targets? In this insightful episode of Two Tall Guys Talking Sales, hosts Kevin Lawson and Sean O’Shaughnessey unpack one of a sales leader’s most crucial yet often overlooked responsibilities: knowing your numbers. With equal parts practical advice and strategic vision, this conversation walks you through the foundational metrics every sales leader should track—customer acquisition cost, average transaction size, support staffing ratios, and more. Whether you’re forecasting growth, scaling headcount, or simply trying to stay ahead of the competition, this episode is your playbook for building a metrics-driven sales organization that thrives.

Key Topics Discussed

  • Why “Keeping Score” Matters in Sales Leadership (00:00)
    Kevin kicks off the episode with a strong analogy to competitive sports, emphasizing that tracking performance metrics is non-negotiable for sales leaders aiming to grow.
  • Building a Forward-Looking Sales Metrics Matrix (00:01)
    Kevin walks through how to build a simple but powerful matrix using transaction volume, average deal size, and headcount to visualize both current performance and future goals.
  • Calculating Average Transaction Size and Quota Coverage (00:02)
    Learn how to reverse-engineer quota achievement by dividing sales goals by average transaction size to determine activity targets for your team.
  • Understanding Customer Acquisition Cost (CAC) (00:05)
    Sean breaks down the components of CAC and explains why every sales leader must know this figure to scale sustainably and profitably.
  • Debunking the “Geopolitics Are Killing Sales” Excuse (00:09)
    Sean challenges the notion that global events are valid reasons for missed quotas, reinforcing that internal execution and strategic clarity are what really matter.
  • Aligning Sales Activity with Strategic Growth Goals (00:12)
    Kevin closes the episode with a systems-thinking approach to leadership, showing how small adjustments in metrics, team development, and compensation can drive exponential growth.

Key Quotes

Kevin Lawson: “Keeping score is important. Really important. I’m talking like March Madness. Final game. Important.” (00:00)

Sean O’Shaughnessey: “If it takes you more than 20 minutes to figure out this information, then you need a better bookkeeping system.” (00:06)

Sean O’Shaughnessey: “You need to know what your average deal size is. You need to know how long it takes you to get a customer. Your CRM should be solving that.” (00:07)

Kevin Lawson: “We want to gently steer our company towards our goals. So the thinking about this process is all about knowing your numbers.” (00:12)

A Significant Actionable Item from this Podcast

Build Your Sales Metrics Matrix This Week
Start with your annual revenue goal. Break it down by the number of salespeople, average transaction value, and number of transactions needed per rep per month. Then layer in your customer acquisition cost, support staffing ratios, and expected margin. This matrix becomes your roadmap for scaling intelligently—whether you’re doubling headcount, expanding territory, or just trying to hit a consistent quota.

Episode Summary

In a world of uncertainty, Two Tall Guys Talking Sales reminds us that clarity comes from data. Kevin and Sean deliver a compelling, no-nonsense discussion about how to take control of your revenue engine by genuinely understanding the math behind your sales motion. Whether you’re a CEO, VP of Sales, or just starting to lead a team, this episode offers an essential primer on aligning your operations to your goals. Don’t miss this one—it might be the wake-up call your spreadsheet has been waiting for.

👉 Hit play now to future-proof your sales strategy by learning how to know your numbers like a pro.

Building Winning Sales Teams for the Future: Insights for CEOs and Sales Leaders

Building Winning Sales Teams for the Future: Insights for CEOs and Sales Leaders

By Sean O'Shaughnessey

What are the key moves that CEOs and sales leaders must make to prepare their teams for success in 2025? That’s exactly what we explored in a recent episode of the Art and Science of Complex Sales podcast hosted by Paul Fuller of Membrain. I had the pleasure of joining Kevin Lawson, President of Lighthouse Sales Advisors, for a deep dive into the strategies defining high-performing sales organizations in the year ahead.

You may recognize Kevin’s name. He is my co-host on the Two Tall Guys Talking Sales podcast. Paul titled our interview with him “Building Winning Sales Teams for the Future with Two Tall Guys.”

In the episode, we uncover the real-world tactics and leadership insights that can help CEOs transform their sales organizations—from defining who to sell to building processes that deliver consistent results. If you’re serious about leading a sales team that thrives amid complexity, I highly encourage you to listen to the full conversation. The link is below—don’t miss it.

Driving Growth Through Data-Driven Leadership

One of the central themes we cover is the role of data in guiding strategic decisions. Successful sales leadership today hinges on the ability to read the right signals—metrics like call volumes, deal velocity, customer life cycles, and attrition rates. We discuss how to turn that data into insights that refine your ideal customer profile (ICP) and strengthen your sales and marketing efforts.

We also discuss how a CEO’s dashboard isn’t static. It must evolve based on the business environment, market pressures, and geopolitical events. Paul Fuller helps steer the conversation into practical territory, where we explore how CEOs can stay ahead by making data-informed decisions and leading their teams with clarity and focus.

This podcast episode will be particularly valuable if you’re a CEO or revenue leader aiming to refine your strategic lens. Be sure to check it out through the link below.

Coaching for Consistent Performance Improvement

Data might show you where to focus, but coaching is what gets you results. Kevin and I discuss the importance of coaching for incremental gains—not just pushing reps to hit more numbers but helping them level up in ability and mindset.

We show how leaders can move salespeople from C-level to B-level performers and beyond through relatable sports analogies and real-world examples. These small, steady improvements compound over time and create a team of confident, capable sellers who know how to win.

We also touch on the need for structured coaching frameworks and repeatable systems, which we provide through website resources. If you lead a team that could benefit from a morale, performance, or accountability boost, this is a conversation you won’t want to miss.

Building a Repeatable, Scalable Sales Process

We close the episode with a focused discussion on sales process discipline. By taking a structured approach to evaluating leads—based on product fit, probability, and alignment with your ICP—leaders can drive better forecasting and higher win rates.

Even modest improvements in key areas like win rate, deal size, and sales cycle length can produce exponential results. We explore how a 7% uptick in core metrics could double your revenue. The message is clear: Clarity, consistency, and customer focus are non-negotiable in 2025.

If you’re looking to future-proof your sales organization, this podcast episode is packed with strategies and examples that can serve as a roadmap. Listen to the full episode and learn how to apply these concepts to your company.

Listen to the Full Episode

This is a powerful episode for CEOs, sales leaders, and anyone responsible for building and leading high-performance sales teams. If you’re ready to equip your team for 2025 and beyond, don’t miss this conversation on the Art and Science of Complex Sales podcast.

🎧 Episode: Building Winning Sales Teams for the Future with Two Tall Guys
🎙 Host: Paul Fuller of Membrain
🔗 https://podcasts.apple.com/us/podcast/building-winning-sales-teams-for-the-future-with-two/id1723340327?i=1000684372709

Click the link to listen now—you’ll walk away with actionable ideas to implement immediately.

Two Tall Guys Talking Sales – Sales Slumps & Hot Streaks: How to Build a Predictable Pipeline – E122

Two Tall Guys Talking Sales – Sales Slumps & Hot Streaks: How to Build a Predictable Pipeline – E122

By Sean O'Shaughnessey

Sales is a game of ups and downs, but what separates top performers from the rest is their ability to keep the funnel full—even when they’re closing deals. In this episode of Two Tall Guys Talking Sales, Kevin Lawson and Sean O’Shaughnessey dive into the art and science of building a consistent pipeline. They discuss strategic approaches to prospecting, leveraging data tools, and the importance of curiosity in sales conversations. Whether you’re starting fresh in Q1 or looking to level up your approach, this episode is packed with actionable insights to keep your sales engine running smoothly.

Key Topics Discussed

🔹 The Sales Roller Coaster – Why salespeople experience cycles of high revenue followed by dry spells and how to smooth out the dips. (00:01:15)

🔹 The First Step: Re-engage Past Clients – Why checking in with existing customers is the easiest way to generate immediate opportunities. (00:02:23)

🔹 Using Free Data Resources to Prospect – How Data Axle and Apollo.io can help salespeople generate lists of high-potential prospects at no cost. (00:03:00)

🔹 Turning Leads Into Prospects – The difference between having a database of names and actually engaging with real sales opportunities. (00:05:31)

🔹 The Power of Networking and Curiosity – How to leverage your network to gain insights about a company before reaching out to decision-makers. (00:10:39)

🔹 Climbing the Ladder to the Decision-Maker – Why you shouldn’t start at the top and how building relationships within an organization can earn you a trusted introduction. (00:14:37)

Key Quotes

💬 Sean O’Shaughnessey on avoiding the sales roller coaster:
“If I go back to my drain-the-swamp analogy, you gotta put water back in the swamp, you gotta let it rain, gotta make it rain.” (00:02:02)

💬 Kevin Lawson on the importance of planning:
“Too often, salespeople stop after the second or third introduction. Timing is everything—keep going, keep networking, and keep qualifying your ideal client profile.” (00:12:39)

💬 Sean O’Shaughnessey on reaching executives:
“You cannot send an email to the CEO and expect it to be read. You are just a salesperson. If you want to sell to the top, you need a referral—and probably from someone lower in the organization.” (00:14:37)

Additional Resources

📌 Data Axle – A powerful business database often available through public libraries. Check with your local library for free access.

📌 Apollo.io – A free tool offering up to 10,000 business contacts per month to help with prospecting.

📌 Lighthouse Sales Advisors Coaching – Kevin Lawson offers 1:1 coaching to help sales professionals refine their strategies. Learn more here.

A Significant Actionable Item from this Podcast

Take 30 minutes this week to evaluate your sales pipeline using the “circle exercise.”

  1. Draw a circle and estimate what percentage of your revenue will come from existing clients vs. new clients.
  2. Identify how many new deals you need to hit your quota.
  3. Rank your existing leads based on fit and potential.
  4. Develop a networking plan to move from a name on a list to an engaged prospect.

Doing this exercise will give you clarity on where to focus your efforts and how to strategically fill your pipeline.

Why You Should Listen to This Episode

Struggling with an empty pipeline after closing strong last year? You’re not alone. In this fast-paced, insight-packed episode, Kevin and Sean break down the fundamental strategies that separate high-performing salespeople from those stuck on the revenue roller coaster. Whether you’re looking for free prospecting tools, better ways to approach networking, or a foolproof plan to keep your sales funnel full, this episode delivers practical tactics you can apply immediately.

🎧 Tune in now and take control of your sales pipeline!

Unlocking Sales Success: The Power of KPIs in Sales Processes

Unlocking Sales Success: The Power of KPIs in Sales Processes

By Sean O'Shaughnessey

Are your sales KPIs helping your team succeed? Many sales leaders focus solely on closed deals. This narrow view misses crucial elements of sustainable sales growth.

The journey matters more than the destination. Sales excellence follows a similar path. Your team’s daily actions and behaviors create the foundation for lasting success.

Effective sales measurement requires a comprehensive view of your team’s activities. Top performers consistently execute vital behaviors that drive results. They prospect strategically, nurture relationships, and expand their presence within existing accounts. These leading indicators paint a clearer picture of future performance than lagging metrics alone.

Your KPI framework must evolve beyond historical analysis. Forward-looking metrics help you spot opportunities and challenges before they impact revenue. What’s happening in your pipeline right now? How are your teams finding new prospects? Which accounts show growth potential?

Experience levels significantly impact appropriate performance measures. New salespeople face different challenges than seasoned veterans. A rookie might need help with fundamental sales behaviors while learning your company’s approach. They need clear operational guidance and structured metrics that reinforce proper execution.

Veteran salespeople bring established skills and proven track records. Their KPIs should emphasize continuous improvement and cultural alignment. How are they advancing their capabilities? What value do they add to the broader sales organization?

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Optimizing Sales Territories for Growth and Efficiency

Optimizing Sales Territories for Growth and Efficiency

By Sean O'Shaughnessey


Territory design is critical for ensuring efficient revenue generation and optimal team performance. Sales leaders, especially those at the helm of small—to mid-sized companies, must revisit and potentially recalibrate their territory strategies to accommodate growth and maintain competitiveness.

Effective territory management starts with a clear understanding of the business landscape. Ensuring that each salesperson has a viable area with ample opportunity is crucial. This may sound straightforward but involves a delicate balance of geographic and customer-based considerations. For instance, some businesses might operate on a model where territories are defined by customer types or specific named accounts, which could include focusing on a set number of businesses to target. On the other hand, more geographically expansive businesses might allocate territories based on regions, such as counties or states, depending on their size and scope.

Moreover, there’s an art to knowing when and how to split or expand territories without diluting the quality of customer relationships or the sales team’s morale. For example, if a territory becomes too large and unwieldy, it might necessitate division to maintain or increase effectiveness. However, this division must be approached with sensitivity and strategy, ensuring it does not merely become a means to reduce commission costs but rather a method to enhance coverage and customer engagement.

The challenge often lies in the execution. Realigning territories can be as complex as managing a new product launch or entering a new market. Factors such as supply chain logistics, warranty services, and resource allocation must all be considered to ensure the new territory design supports immediate sales goals and long-term business growth.

Sales leaders must also be adept at navigating the internal dynamics of territory adjustments. For instance, a well-performing salesperson might view the reduction of their territory as a punitive measure, rather than an opportunity to enhance focus and potentially increase earnings from a more concentrated area. It is crucial for management to communicate effectively, ensuring that the team understands these changes are aimed at optimizing the entire sales process and enhancing their ability to meet customer needs more effectively.

Ultimately, the goal of territory design should align with the overarching business strategy aimed at growth and sustainability. This includes not only deciding the physical or conceptual boundaries of each territory but also ensuring that each sales team member is positioned to succeed, supported by robust training and resources, and motivated by a clear understanding of their role in the company’s broader objectives.

As companies prepare for another business cycle, revisiting the principles of effective territory management could be the key to unlocking new levels of success and stability. This strategic approach helps maintain a competitive edge and supports a healthy, dynamic sales culture that adapts to the changing landscapes of industries and markets.

Actionable suggestions that sales managers can do today:

  1. Conduct a Territory Audit: Review your current sales territories by evaluating sales data, customer distribution, and team feedback. Identify areas where territories may be too large or too small and assess the potential for restructuring to improve coverage and salesperson efficiency. This will help you understand if your current design aligns with optimal market coverage and team capabilities.
  2. Initiate a Team Discussion: Meet your sales team to discuss the current territory alignment. Use this opportunity to gather insights directly from those on the ground about their territories’ challenges and opportunities. This feedback is invaluable for making informed decisions about potential territory realignments or adjustments to meet customer needs and company goals.
The Art of Sales Compensation: Balancing Motivation and Goals

The Art of Sales Compensation: Balancing Motivation and Goals

By Sean O'Shaughnessey

Few topics in sales stir as much discussion and attention as compensation plans. The proper compensation structure can ignite a team’s performance, attract top talent, and drive a company toward its strategic goals. Conversely, a poorly conceived plan can lead to demotivation, high turnover, and missed targets. This discussion delves into the intricacies of designing compensation plans that motivate and align with a company’s broader objectives, offering insights for salespeople, sales managers, and CEOs alike.

Compensation in sales is not just about rewarding past successes; it’s a strategic tool that shapes future behavior. The fundamental premise is straightforward: sales professionals are motivated by earnings potential. Yet, applying this premise within compensation plans can be complex, nuanced, and sometimes contentious. It’s essential to balance base salary and variable compensation, ensuring sales representatives are adequately supported and incentivized to pursue new business aggressively.

The debate between 100% commission versus a guaranteed salary represents the spectrum of risk and reward in sales compensation. On one end, a 100% commission plan offers unlimited earning potential but lacks security, potentially leading to a high-stress culture and a short-term focus. It also makes it much more difficult to recruit younger sales superstars who may not have the financial security to afford a 100% commission compensation plan. Conversely, a guaranteed salary provides stability but might dampen the urgency and hunger that drive sales excellence. The consensus among seasoned sales leaders points to a balanced approach, often epitomized by a 50/50 split between base salary and variable compensation. This structure aims to provide a safety net while ensuring sales efforts directly impact earnings.

Understanding the market potential within a sales representative’s territory is critical when setting quotas and compensation. For larger teams, the ability to average performance across the group can help smooth out individual variances. However, in smaller teams or founder-led sales organizations, each member’s contribution is magnified, demanding a more nuanced approach to quota setting. Regardless of team size, aligning individual quotas with company objectives requires a blend of data analysis, market insight, and an appreciation for each territory’s unique challenges and opportunities.

Beyond the structure of compensation plans, the timing and criteria for payouts are pivotal. Monthly payouts can incentivize immediate results and help maintain momentum, whereas quarterly payouts may lead to strategic deal timing but can also introduce cash flow challenges for sales professionals. Moreover, compensation plans should evolve in tandem with a company’s strategic goals, ensuring that sales efforts are aligned with the organization’s overarching priorities.

Crafting effective sales compensation plans is both an art and a science. It demands a deep understanding of human motivation, a clear vision of company objectives, and a commitment to fairness and transparency. By carefully designing compensation structures that reward performance, foster team collaboration, and support long-term strategic goals, companies can create a sales culture that not only meets targets but exceeds them, driving growth and success in the competitive world of B2B sales.

Immediate Action Item 1: Evaluate and Adjust Your Compensation Structure

Assessment of Current Plans: Begin by thoroughly assessing your current sales compensation plan. This involves evaluating how well the existing structure supports your company’s strategic goals and motivates your sales team. Are your sales representatives meeting their targets? Do they feel motivated and supported? These questions can uncover valuable insights into the effectiveness of your compensation plan.

Balanced Compensation Review: Reflect on the balance between your organization’s base salary and variable compensation. Does it align with the 50/50 split recommended by seasoned sales leaders? If not, consider adjusting this balance to provide both security and incentive to your sales team. This balance is crucial for motivating your team while ensuring they are adequately supported.

Action Steps:

  • Survey your sales team to gather feedback on the current compensation plan.
  • Analyze sales performance data to identify patterns or areas for improvement.
  • Consult with HR or compensation specialists to explore potential adjustments.
  • Implement a pilot program for a new compensation structure in a small team or region to measure its impact before a company-wide rollout.

Immediate Action Item 2: Align Compensation with Strategic Goals and Territory Potential

Quota Setting and Territory Analysis: It’s essential to align individual quotas with the sales territory’s potential and the overarching company objectives. This alignment ensures that sales efforts are directed towards strategic goals, optimizing both individual and team performance.

Compensation Plan Evolution: Regularly review and update your compensation plans to align with your company’s strategic goals. This might mean adjusting the payout criteria, the balance between base and variable compensation, or the targets set for sales representatives.

Action Steps:

  • Conduct a territory analysis to ensure realistic quotas align with market potential.
  • Set up a quarterly review process for the compensation plan to ensure it remains aligned with company objectives and market conditions.
  • Engage sales managers in discussions about territory potential and strategic goals to ensure their input is considered in compensation planning.
  • Communicate changes in compensation plans clearly and effectively to the entire sales team, ensuring they understand how these changes benefit both them and the company.

Implementing these action items can lead to a more motivated sales team, better alignment with strategic goals, and improved sales performance. Remember, the key to successful sales compensation is not just in the design but in the ongoing evaluation and adjustment to meet the evolving needs of both your sales team and your company.