The 1st Component of a Profitable
Sales & Customer Growth Solution
The
Job Description Strategy

1. Improves The Level Of “Quality” And “Performance” That Will Be Expected & Accepted From Your Outbound B2B Telephone Sales Representatives

2. It Also Significantly Increases The Probability
That “Continuous” - Profitable Sales & Customer Growth - Will Be Achieved and Maintained

Converting Improved Performance Potential
Into Improved Performance Results

With A Job Description Strategy In Place
That Will Attract Outbound Sales Representatives With A Much Higher Potential For Achieving Increased Profitable Sales & Customer Growth Performance …

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The Compensation & Incentive Strategy
Must Then Be Developed So That It Maximizes
The Probability Of Converting The “Potential”
To Achieve Continuous Profitable Sales
& Customer Growth …

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Into Increasingly Higher Levels
Of Profitable Sales & Customer Growth
Performance and Results!

7 Reasons Why It's Important To Have An Effective Compensation & Incentive Strategy

1. A Motivated Sales Force Sells More & Sells More Profitably Than An Unmotivated Sales Force

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2. Rewards And Incentives Direct Focus,
Commitment & Results

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3. Aligns Sales Force Efforts On Key
Organizational Objectives

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4. Creates An Equally Effective Balance
On Customer Acquisition & Retention

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5. Results In The Achieivement Of Continuous Profitable Sales & Customer Growth

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6. Results In Balanced Growth Across
Both Product & Market Segments

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7. Develops Long Term Customer Commitment

9 Requirements Of Any Profitable
Compensation & Incentive Strategy

1. Must Be Fair

2. Must Be Simple*

3. Must Be Clear

4. Must Be Aligned With Marketing Strategy

5. Must Focus On Target Customer Development

6. Must Motivate Top Performers To Overachieve

7. Should Include A 1st Year Adjustment
For New Hires

8. Should Include A "Bluebird" Adjustment

9. Level of Incentive Should Rise
With Level of Performance

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* Compensation Plans Should Be Simple
Enough To Fit On A Single Sheet Of Paper
- Including Payout Example

Sales Compensation & Turnover

In A 2007 Survey of 1,000 Outbound B2B Telephone Sales Representatives:

52.6% Stated They Would Leave Their Current Sales Job If Offered Better Compensation & Incentives

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So Within Your Compensation & Incentive Strategy Lies Many Opportunities To Reduce Turnover

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And Turnover Remains Among The Top Inhibitors           To Achieving & Maintaining Continuous Profitable Sales & Customer Growth Performance

Common Compensation Plans

Outbound B2B Telephone Sales Representatives    Have Variations of 3 Common Compensation Plans To Choose From:

• Salary Only
• Commission Only
• Salary + Incentive

Salary Compensation Plans

Under Salary Compensation Plans,
Outbound Sales Representative
Are Paid A Fixed Compensation …

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The Most Effective Implementations
Of Salary Compensation Plans
Include Periodic Short Term Incentives

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Such As Sales Contest Money And
Prizes Or A Discretionary Bonus.

Salary Compensation Programs
Have Proven To Be Effective
In The Following Situations:

1. When A Telephone Sales Representative Sets Appointments For A Field Representative

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2. When A Telephone Sales Representative Primarily Services Accounts Won By A Field Representative

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3. When An Outbound Telephone Sales Representative Primarily Prospects Leads For Senior Outbound Sales Reps To Develop
Hunter/Gatherer Concept

Reasons Salary Compensation Plans
Are "Not Common" For Outbound B2B Telephone Sales Organizations

1. Salary Compensation Plans Don't Attract & Retain Top Sales Candidates Because They Put Too Great A Limit On Their Earning Potential.

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2. Salary Compensation Plans Often De-Motivate Top Achievers Because They Perceive The Disparity Between Their Salary & Those Of Underachievers To Be Too Narrow.

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3. Salary Compensation Plans Typically Incur The Greatest Selling Costs.

Commission Compensation Plans

Under A Commission Type of Compensation Plan Outbound B2B Telephone Sales Representatives

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Are Paid A Percentage Of Their
Invoiced - Sales or Margin Dollars

Types Of Commission Plans

• Straight Commission
• Commission With Draw

3 Potential Advantages
Of Commission Type Compensation Plans

• Simple To Understand And Administer
• Pay Is Directly Related To Results Achieved
• Perception That It Maximizes Incentive

5 Potential Disadvantages
Of Commission Type Compensation Plans:

1. Sales Representatives Will Focus Their Efforts
On Sales Volume Rather Than On Profit

2. Penetration Into Their Installed Base Of Accounts Will Normally Be Relatively Shallow

3. During Sustained Periods Of Low Company Sales,   Turnover Will Rise Significantly Due To A Lack Of Loyalty & Dramatic Compensation Swings

4. Customer Service Will Take A Back Seat
To Short Term Sales Resulting In
Poor Customer Retention Performance

5. The “Sweet Spot” Of The Sales Team
Becomes De-Motivated As Sales Management / Leadership Succumbs To Pressure From Seasoned Reps To Transition Top Producing Accounts From Terminated Reps To These More Tenured, Yet Often More Stagnant Sales Representatives

Account Transition Policy

The Transitioning Of “Free Commission”
Active Buying Accounts
From Terminated Sales Reps …

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To Sales Representatives
With More Tenure
But With A Much Poorer Work Ethic

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Than The Newer, Yet More Driven,
Harder Working & Oftentimes
More Deserving Reps.

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Is One Of The Most Common
& Most Profit Inhibiting Mistakes
Made In Sales Organizations Today!

See Our Section On Developing
A Profitable Account Transition Strategy
& Learn How To Turn This
“Profit Inhibitor” Into A “Profit Accelerator”

Salary Plus Incentive - Compensation Plans

Salary Plus Incentive Plans Are The “Most Common” Compensation Plans In Use By Outbound Sales Organizations Throughout North America

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That Achieve & Maintain The Highest Levels Of Continuous Profitable Sales & Customer Growth

5 Potential Advantages Of Salary Plus
Incentive Compensation Plans:

1. Outbound B2B Telephone Sales Organizations Compensated By Salary Plus Incentive Plans

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Consistently Outperform Sales Organizations Compensated By Salary Or Commission Type Plans

2. Top Performing Sales Representatives Agree
That The “Security” Provided By This Plan, Combined With Its Multiple “Earning Options”

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Provides The Greatest Incentive
For Them To Meet & Exceed
Their Established Performance Goals

3. Salary Plus Incentive Plans
Create A Stronger Bond Of Loyalty
Between The Sales Team & The Employer

4. Salary Plus Incentive Plans
Provide A Good Ratio Of Selling Expense To Sales

5. Salary Plus Incentive Plans
Provide The Organization
With Greater Control Of The Variable Income

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Which Increases The Organization’s Ability
To Direct Targeted Behavior
&
Increase Targeted Selling Results

6 Keys To Salary Plus Compensation Success

There Are 6 "Key Components" That Must be Properly Designed In Order To Maximize The Probability That An Organization’s Salary Plus Incentive Program Will Result In Continuous Profitable Sales & Customer Growth.

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1. The Percentage Split Of Salary To Incentive
2. The Type Of Incentive
   1. Commission
   2. Bonus
   3. Commission Plus Bonus
   4. Company Car
3. Incentive Income Factors
   1. Gross Sales
   2. Gross Profits
   3. % Of Returns
4. Accurate Setting Of Salary Levels
5. Recency And Frequency Of Incentives
6. Bonus Pay-Out Levels And Timeframes

Developing A Profitable
Sales Incentive Strategy

Regardless of the Compensation Type Chosen,
Other Key Incentives Must Be Provided To Maintain High Levels of Motivation and Achieve Maximum Performance and Profitability.

Key Incentives Might Include:

• Awards
• Car Allowance
• Educational Assistance
• Encouragement
• Gifts
• Medical Benefits
• Promotions
• Recognition
• Stock Purchase
• Sales Contests
• Salary Increases
• Security
• Trips

Commission Escalator's
Accelerate Margin Dollar Performance

Adding A Commission Escalator
For Each Margin Dollar
A Sales Representative Achieves
Over Their Margin Dollar Quota …

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Will Get Your Sales Representatives
To Press Their Sales Accelerator
Rather Than Their Sales Brakes
Once Their Quota Has Been Met

Customers That Have Added
Our Commission Escalator To Their
Sales Compensation Strategy

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Have Increased
The Margin Dollar Performance
Of Their Sales Organization
By An Average of 12%

Develop A "Points Based" Incentive Program

Salespeople Are Motivated by Sales Contests
& Sales Incentive Programs

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So Develop An Incentive Program That Rewards Your Outbound Sales Representatives With
Points For Each Key Sales Goal They Achieve:

1. Margin Dollar Quota
2. # of New Customers
3. Rate Of Return
4. Customer Contact Time
5. New Product / Service Sales

The More Goals They Exceed
The More Points They Receive

Incentive Points Are Accumulated &
Can Be Redeemed Each Friday

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Redeemed For Valuable
Prizes Such As:

• Flat Panel TV's
• Surround Sound Systems
• Bose Stereos
• Ipods
• Wii Systems

The More Valuable the Prize
The More Points Required to Earn It

Place Prizes Around The Sales Floor
So The Sales Representatives Can See Them Many Times Throughout The Day

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The Results From This Program Are Tremendous!

"People often say that motivation doesn't last.
Well, neither does bathing -
that's why we recommend it daily."

Zig Ziglar

"When dealing with people, remember you are not dealing with creatures of logic,
but creatures of emotion."

Dale Carnegie

Salespeople Live On An Emotional Roller Coaster
Therefore, It Is Important To Provide As MuchPositive Reinforcement As Possible.

10 Ways To Maintain Constant Sales Motivation

1. Send Out Motivational Quotes
2. Provide Daily Encouragement
3. Recognize Wins - Big and small
4. Run Regular Sales Contests
5. Develop An Incentive Strategy
6. Create A Motivational Tape Library
7. Teach Salespeople How To Effectively
   Set & Achieve Personal Goals
8. Talk To Salespeople About
   What Interests Them
9. Tell Your Sales Staff You Appreciate Them
   & Tell Them It Sincerely and Frequently
10. Remember Attitude Determines Altitude

A Profitable Compensation & Incentive Tip

Sales Contests Improve:

• Motivation
• Focus
• Short Term Results

Sales Contests That Drive Talk Time
& Targeted Sales Results

Develop Sales Contests
That Run For The First 4 Hours
To Get Reps On The Phone Early

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Provide Your Sales Team
With A Targeted Promotion &
Target Customer / Prospect Galleys

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Tie The Earning Of The Prizes
To Achieving Talk Time Goals
& Targeted Sales Results

Developing Team Contests

Set A Call Time Goal
That Each Sales Team Must Meet

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Start All Teams On The Phones
At The Same Time

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Once Each Team Reaches
Their Agreed Upon Call Time Goal

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The Entire Team Gets To Go Home!

Benefits Of Empowering
Your Sales Representatives

Schedule Regular Sessions
For Salespeople To Meet Together
To Discuss Ways Of Increasing Sales

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Salespeople Have The Closest Contact
With Your Customers & Therefore
Are More Apt To Know

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What Customers Need From You
In Order To Improve & Grow

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Also, Salespeople Are More Apt
To Buy Into New Ideas & Processes
When They Develop Them
On Their Own!

Outbound Excellence
Compensation & Incentive Solutions

Our Compensation & Incentive Solutions
Have Been Tested & Proven Effective In Outbound Sales Organizations Throughout North America & Europe For Over 12 Years.

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Our Compensation & Incentive Solutions
Are “Systems Of Tailored Processes”
&
Therefore Are Equally Effective Regardless
Of An Organization’s Products, Services, Locations, Culture, Strategy or Leadership Objectives.

Our Compensation Plans Increase Profitable Sales And Customer Growth

97% of The Compensation & Incentive Solutions
We Have Both Designed And Implemented …

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Have Effectively Increased Each Outbound Sales Organization’s Performance And Profitability…

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Compared To The Organization’s Performance And Profitability Achieved Using Their Previous Compensation & Incentive Strategy.

8 Keys To The Effectiveness
Of Outbound Excellence
Compensation & Incentive Solutions

1. It Is Our Belief That The Most Effective And Profitable Compensation Plans Are Salary Plus Incentive Plans With The Salary Based On Margin Dollar Performance.

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2. There Are A Number Of Vital Incentive Components That Must Accompany Any Compensation Plan ……

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   If It Is To Result In The Achievement  Of  Continuous Profitable Sales & Customer Growth Performance.

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3. A Margin Dollar Compensation Plan Must
   Be Supported By Processes That Educate Salespeople In The Following Areas:

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   1. Defining Of Margin Dollars
   2. How Margin Dollars Are Calculated
   3. How Margin Dollars Differ
      From Profit Dollars
   4. How Margin Dollars Influence The Company's Profitability
   5. How An Understanding Of Margin Dollars Can Dramatically Increase A Sales Representative’s Personal Wealth.

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4. An Organization’s Margin Dollar Strategy Should Be Taught, Reinforced & Developed in:
   1. New Employee Orientation
   2. New Hire Training
   3. "Lunch And Learn" Sessions
   4. Team and Company Meetings

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5. An Effective Reporting Structure Should Be Developed That Monitors Orders That Do Not Meet Minimum Margin Dollar / % Goals.

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6. Salespeople That Are Sell Products and Services Below Minimum Margin Goals Should Be Identified & Educated and Their Orders Should Be Audited To Ensure Their Development Is Progressing In A More Profitable Manner.

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7. For Low Margin Sales That Are Being Affected By Influences Other Than Underdeveloped Selling Skills, These Influences Should Be:
   1. Identified
   2. Categorized
   3. Analyzed
   4. Reported
   5. Resolved

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8. Sales Managers Should Be Given The Responsibility to Manage Their Sales Team’s  Margin Dollar -Improvement Strategy

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   As A Component Of Their Sales Leadership Development Plan.

Let Us Customize
A Profitable Outbound Excellence
Margin Dollar Based Compensation & Incentive Solution For You

We'll Provide You With A Complete Margin Dollar Based Compensation & Incentive Solution That Will Help Maximize The Sales, Profits & Customer Growth Performance Of Your Outbound B2B Telephone Sales Organization.