Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs
Leverage the full power of your sales force with a cutting-edge compensation program

Salespeople are motivated by many things—and how they’re paid tops the list. Sales compensation is one of the best tools for motivating any sales force and thus maximizing business revenue. Do you have strategically aligned sales compensation plans or are your pay plans holding back your sales force?

Compensating the Sales Force has helped thousands of business leaders worldwide create sales compensation programs that drive sales performance, increase revenue, and trigger business growth. Now, this new edition brings you fully up to date with new approaches for a business landscape where product/solution objectives and customer needs are in constant in flux.

Sales guru David Cichelli provides everything you need to build an incentive plan that delivers real financial results. He takes you step-by-step through the process of setting target pay, selecting the right performance measures, and establishing quotas. You’ll learn everything there is to know about:

•Why job content drives sales compensation design

•Methods for calculating formulas for payout purposes

•The roles of quota allocation, sales crediting, and account assignment

•Compensating a complex sales organization and global sales teams

•Administering, monitoring, and measuring the effectiveness of the program

An indispensable resource for anyone involved in sales compensation—from CEOs and sales managers to HR personnel to IT professionals—Compensating the Sales Force provides all the tools you need to design and implement a sales compensation plan that increases profits―and drives the sales team to exceed sales targets.


1126983044
Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs
Leverage the full power of your sales force with a cutting-edge compensation program

Salespeople are motivated by many things—and how they’re paid tops the list. Sales compensation is one of the best tools for motivating any sales force and thus maximizing business revenue. Do you have strategically aligned sales compensation plans or are your pay plans holding back your sales force?

Compensating the Sales Force has helped thousands of business leaders worldwide create sales compensation programs that drive sales performance, increase revenue, and trigger business growth. Now, this new edition brings you fully up to date with new approaches for a business landscape where product/solution objectives and customer needs are in constant in flux.

Sales guru David Cichelli provides everything you need to build an incentive plan that delivers real financial results. He takes you step-by-step through the process of setting target pay, selecting the right performance measures, and establishing quotas. You’ll learn everything there is to know about:

•Why job content drives sales compensation design

•Methods for calculating formulas for payout purposes

•The roles of quota allocation, sales crediting, and account assignment

•Compensating a complex sales organization and global sales teams

•Administering, monitoring, and measuring the effectiveness of the program

An indispensable resource for anyone involved in sales compensation—from CEOs and sales managers to HR personnel to IT professionals—Compensating the Sales Force provides all the tools you need to design and implement a sales compensation plan that increases profits―and drives the sales team to exceed sales targets.


61.0 In Stock
Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs

Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs

by David J. Cichelli
Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs

Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs

by David J. Cichelli

Hardcover(3rd ed.)

$61.00 
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Overview

Leverage the full power of your sales force with a cutting-edge compensation program

Salespeople are motivated by many things—and how they’re paid tops the list. Sales compensation is one of the best tools for motivating any sales force and thus maximizing business revenue. Do you have strategically aligned sales compensation plans or are your pay plans holding back your sales force?

Compensating the Sales Force has helped thousands of business leaders worldwide create sales compensation programs that drive sales performance, increase revenue, and trigger business growth. Now, this new edition brings you fully up to date with new approaches for a business landscape where product/solution objectives and customer needs are in constant in flux.

Sales guru David Cichelli provides everything you need to build an incentive plan that delivers real financial results. He takes you step-by-step through the process of setting target pay, selecting the right performance measures, and establishing quotas. You’ll learn everything there is to know about:

•Why job content drives sales compensation design

•Methods for calculating formulas for payout purposes

•The roles of quota allocation, sales crediting, and account assignment

•Compensating a complex sales organization and global sales teams

•Administering, monitoring, and measuring the effectiveness of the program

An indispensable resource for anyone involved in sales compensation—from CEOs and sales managers to HR personnel to IT professionals—Compensating the Sales Force provides all the tools you need to design and implement a sales compensation plan that increases profits―and drives the sales team to exceed sales targets.



Product Details

ISBN-13: 9781260026818
Publisher: McGraw Hill LLC
Publication date: 11/22/2017
Edition description: 3rd ed.
Pages: 352
Product dimensions: 6.30(w) x 8.80(h) x 1.20(d)

About the Author

David J. Cichelli is the Senior Vice President of The Alexander Group. He has been an instructor for Columbia University's Sales Management Program and is the author of WorldatWork's certification classes on sales compensation. Cichelli's clients include leading companies from such industries as financial services, high-tech, software, telecom, wholesale, consumer goods, health care, and many others.

Table of Contents

Acknowledgments xiii

Preface xv

Introduction xvii

1 Why Sales Compensation? 1

The Role of the Sales Force 1

Why Sales Compensation Works 2

The Power of Sales Compensation 3

Job Content-The Source of Sales Compensation Design 5

Sales Jobs and Sales Process 6

Sales Compensation-Paying for the Point of Persuasion 9

Sales Force Obsolescence and Sales Compensation 9

The Impact of Customer Relationship Management 11

What Can Go Wrong? 11

Summary 12

2 Sales Compensation Fundamentals 13

Variable Compensation Models 13

Income Producers versus Sales Representatives 17

About Sales Compensation Concepts 20

Sales Compensation Design Elements for Sales Representatives 21

Eligibility 22

Target Total Cash Compensation 22

Pay Mix and Leverage 24

Performance Measures and Weights 27

Quota Distribution 29

Performance Range 30

Performance and Payment Periods 32

Summary 34

3 Who Owns Sales Compensation? 35

Sales Compensation Program Ownership 36

Program Accountabilities 36

Assignment of Program Accountabilities-Large Sales Organizations 38

Using Committees 40

Sales Compensation-The Process Manager 41

Summary 42

4 Why Job Content Drives Sales Compensation Design 43

Job Content Drives Sales Compensation Design 43

Sales Job Components 44

Sales Job Type Inventory 47

Job Levels 56

Job Design Errors 56

Sales Compensation Practices by Job Types 59

Summary 59

5 Formula Types 60

Types of Plans 60

Illustrating Formula Payouts with Sales Compensation Formula Graphs 60

Unit Rate Plans 62

Target Pay Incentive Plans: Commission versus Bonus 69

Target Incentive Plans: Commission Formula 72

About Link Designs 83

Bonus Formula: Providing Equal Earning Opportunities When Territories Are Dissimilar in Size 90

Target Bonus Plans 91

Bonus-Calculation Basis 99

Special Designs 100

Add-On Plans 107

Base Salaries 108

Summary 112

6 Formula Construction 113

Fundamentals of Sales Compensation Formulas 113

The Economics of Income Producers 116

Advanced Thinking about Income Producer Commission Rates 118

Constructing Sales Representative Formula 121

Formula Construction Worksheets 126

Summary 136

7 Plan Cost Modeling 137

Modeling Objectives 137

Successful Plan Modeling Steps 141

Summary 147

8 Support Programs: Territories, Quotas, and Crediting 148

Territory Configuration 149

Quota Management 154

Sales Crediting 161

Summary 165

9 Employment Status and Pay Implications 169

New Hires 169

Lateral Transfers 170

Promotions 170

Involuntary Terminations 171

Resignations 171

Leave of Absence 171

Vacation Treatment 172

Temporarily Assigned Accounts 172

Summary 172

10 Difficult-to-Compensate Sales Jobs 173

Channel Sales Representative 173

Long Sales Cycle Mega-Order Seller 175

Business Development Specification Seller 175

Strategic Account Manager 176

Pursuit Team 177

New Account Seller 178

Account Manager 179

Overlay Specialist 180

New Hire 181

Branch Manager 181

House Account Manager 182

Sell and Deliver Service Provider 182

Merchandiser 183

Summary 183

11 Small Companies, Big Companies-Sales Compensation Solutions 184

Does Company Size Affect Sales Compensation? 184

Small Business, Small Sales Force 184

Fast-Growing Start-Up Companies 187

Cottage-Style Growth Companies 189

Large Companies 189

Summary 193

12 Compensating the Complex Sales Organization 194

Examples of Complex Sales Organizations 196

Challenges for Sales Compensation 200

Preferred Sales Compensation Outcomes 201

Sales Compensation Rules for Complex Sales Entities 202

Summary 203

13 Global Sales Compensation 204

The Philosophy of Internationalism versus Globalism 204

Sales Compensation-A Local Solution 207

Global Trigger Conditions 210

Global Sales Compensation Solutions 212

Trends in Global Sales Compensation Practices 214

Summary 215

14 Administration 216

Administration Components 216

How to Avoid Unnecessary Administrative Burdens 224

Summary 224

15 Implementation and Communication 225

Implementation 225

Communication 229

Summary 235

16 Program Assessment 236

Strategic Alignment 236

Employee Motivation 239

Best-Practice Variance 240

Return on Investment 243

Program Management 243

Summary 244

17 Sales Compensation Design 245

The Sales Compensation Design Process 245

10 Steps to Sales Compensation Design 246

Summary 251

Closing Notes 253

Appendix A Sales Compensation Design Principles 255

Appendix B Sample Sales Compensation Plan 294

Appendix C Sales Compensation Survey Companies 309

Appendix D Sales Compensation Administration Software Vendors 311

Index 313

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