Since the very beginning companies throughout the world have been exercising a common practice of providing sales commission to their reps. In an attempt to boost up the profitability of the business and the productivity of the sales reps, companies provide such commissions. With an intent to receive the commissions, sales reps tend to work harder and push themselves beyond limits and bring for the company, the profits more than what is assigned and expected from them.
This sales commission is provided to the sales reps by companies with reference to a certain commission management plan. This plan consists of certain parameters set for the reps to satisfy, on the basis of these parameters’ companies decide the amount or percentage of commission paid to them. The plan is made after taking into consideration several important topics such as the number of reps throughout the branches of the company and other aspects.
Making a sales commission plan for a company
Making a sales commission plan for a company with reference to which companies provide spiff to their reps used to be a hectic process in the olden times.
- Plans were made and operated manually through spreadsheets. This demanded constant updating of data by individuals.
- It was often observed that this process encountered a large number of inaccuracies and errors. Commission calculations on spreadsheets is kind of complex and difficult.
- It was not a transparent method. As it was updated manually it did not show real time data and hence reps were not able to check for what they have earned and achieved.
- It was quite a time-consuming process, for the team had to check in for the errors and make necessary corrections to it which took quite a long time.
It was for these troubles in the manual commission planning system that software companies and websites like ElevateHQ took the responsibility of commission planning into their hands. These softwares offer a more simplified planning system with really effective plans which ensure the profitability of the businesses. With ElevateHQ give yourself the best commission management plan and keep your reps happy and satisfied who in return would work with their full potential and would contribute to the productivity of the company.
How commission management softwares have eased the process of sales management plans
We discussed the evolution of the commission management softwares. Let us now discuss how and in what ways are these softwares better than the old conventional method of commission planning.
- It offers complete transparency to the agents for it allows a real time accessibility to the data related with the commission statements.
- It helps in achieving high productivity. Manual calculation of the commission statements is really complex and time consuming. It also causes human errors which then need to be looked into multiple times for rectification, thereby consuming high time and decreasing the productivity, but as far as a software is concerned it won’t make errors and ensure accuracy.
- These softwares set smart sales goals for the reps. Sales reps are really competitive in nature and providing them smarter sales goals would get the best out of them.
