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If your sales team will consistently push for success in your business, your sales commission must be commensurate to their efforts. From generating leads and converting them to customers to closing deals and making successful sales, every sales rep should be well compensated for their hard work.
To be able to compensate your sales team adequately, your commission structure must be topnotch. It must also flow with your sales funnel.
Undoubtedly, there are several solutions – such as Bitrix24 – with which you can automate your commission structure. But automation, by itself, is not sufficient if your commission will drive success for you. So, how then do you set up a structure that drives more and more sales for your business?
Keep it simple
Nothing kills a business faster than a complicated commission structure. No sales agent will gladly welcome a change in their commission after closing a deal when such an item was not clearly explained beforehand. Most importantly, you will also not get the best from your sales team if your commission structure is packed with complex calculations.
It Should Mirror Your Goals
On what standards is your business founded?
And what is the essence of your sales program?
If your sales commission structure will foster your business, it must align with your organizational goals. If for example, you aim to get a new product out in the market, your commission structure should mirror this intention. By aligning your commission to your business goals, your sales team can understand the individual goal for each sale by looking at their unique commission structure.
Keep Your Quotas Real
It very common to find that most sales representatives do not often meet up with sales targets. This failure is because the quotas are usually too high and somewhat unrealistic. And when quotas are not met, your commission structure may seem impotent.
To motivate your sales team, always set attainable quotas – and can even be exceeded. You can also include additional incentives for reps who exceed established quotas. By so doing, you drive success and also improve the efficacy of your commission structure.
Calculating Your Sales Commission in Bitrix24
Having explained how you can set up an effective sales commission structure, we’ll now show you how we developed a means for our clients to calculate their sales commission in Bitrix24.
The client we made this development for works with a support team in addition to their sales team. This support team helps with installations and repairs, and commission is split between them and the sales team. We have automatically included commission calculation for each deal so that the manager knows how much commission is allocated to each agent.
The illustration below shows that development.
1. So, we first create a deal for our client and select the products. For the products, we set up price and other necessary details.
2. Based on the total price of the products in each deal, we select the commission type.
3. When we save the deal, the commission rate is immediately calculated.
4. If the products in question include fixed commission, they will also be included in the deal.
5. When the deal is run through the different stages and closed as successful, the commission is automatically assigned to the responsible reps.
6. Under the deal, we have the agent’s and manager’s commission reports.
7. In the agent’s commission report, every deal they handle, the total discount, the fixed and flexible commission are included as well as the total commission. Only the sales agent and the manager have access to this report.
8. On the other hand, the manager’s commission report contains the commission program for all the sales agents within a given period.
So, do you want to drive success among your sales reps? Contact us today, let’s help you set up an effective commission structure.
You can also watch the video of this illustration below.