Commission Versus Quota - Sales Influence Podcast - SIP 593

<h3>Compensation Strategy</h3> <ol> <li>💰 Compensation plans directly influence salesperson behavior, with effective plans tying quotas to pocketbook to motivate salespeople to hit numbers and grow the company.<br /> <br /></li> <li>📊 Quota-based commission plans can be designed to provide a bonus for exceeding quota, motivating salespeople to push beyond their targets.</li> </ol> <h3>Psychological Factors</h3> <ol> <li>🧠 Commission plans should be designed with psychological considerations in mind, as they significantly impact salesperson behavior and motivation.</li> </ol> <h3>Performance Drivers</h3> <ol> <li>📈 Commission tied to quota motivates salespeople to hit their numbers, offering a higher percentage of sales revenue when meeting or exceeding quota.<br /> <br /></li> <li>🎯 When salespeople aren't meeting quotas, the primary issue is often the compensation plan, not sales training, as it fails to provide adequate motivation.</li> </ol>