Growth Strata•Gems Magazine Growth Strata•Gems Magazine Fall 2017 - Page 10

SALES CONTESTS Sales Contests Increasing Revenues and Profits I ’ve been selling for six decades and this much I know: Sales people love competing and companies can tie sales-incentive prizes to desired revenue and margin goals. Let me say that another way. Done with thought, sales contests are not expenses but rather investments. Before digging into the contests directly, let’s step back and look at compensation for salespeople. All too often, companies will tweak one or two components of the overall “comp” plan, which is not the best approach. Here are the component parts of a comp plan: salary and benefits, reimbursement of out- of-pocket expenses, target incentive pay, over-target incentive pay, contests and recognition. When looking at restructuring your salesperson compensation plan, we recommend each component be reviewed and cobbled togeth