Giving out a certain commission on the sales that a sales rep makes for its company is a general practice almost every company exercises. The commission that companies provide to their reps is in the interests of both the parties, the company, and the reps. If companies hand out commissions to their reps, it can be assumed that reps would certainly work harder and enhance their performances thereby bringing the company more profits and during this process increasing their productivity as well. This commission or sales cut hence provides a temporary thrust to businesses.
Commissions are rewarded for sales through a set of rules set by businesses which are called a sales commission plan. The sales incentive management is then done with reference to the commission plan. This plan is made after taking into consideration a wide range of issues and aspects. The plan should be such that it would ease the process of commission calculations for the ones calculating it and should also make sure that the reps get the incentives that they deserve.
Teams assign a certain target or a goal to the reps which they must achieve within the specified time span. The time span varies from a month to a quarter depending upon the targets assigned. If the targets assigned are less and easy to achieve, reps are given a shorter time span to achieve the target and if it is tough to achieve, they are given the time span accordingly.
As we have discussed earlier, commission plans are made after taking into consideration a wide range of issues such as the scale of the business, members of the sales teams, etc. The plan can be made either manually through spreadsheets or by using the software. Using software for making a commission plan is considered to be more effective than using spreadsheets and making plans manually.
Using sales commission software would simplify most of the work. It would also cost businesses relatively less than using spreadsheets. Moreover, using the software would save businesses a great deal of time which they can later use to improve productivity.
We have already discussed that it is better to use software for commission management than using spreadsheets. Let us now discuss in what ways they are better than spreadsheets.
There are many such software available which you could pick from. Amongst all of them, the one with maximum credibility is the ElevateHQ. With elevate give your business the most suitable commission plan which would help boost your business.