LC079: Incentives for your Sales Team

launchpeer - September 13, 2018 - 0 comments

Today’s question:

Today’s question comes from Steve. I want to pay my team when they are able to get me a meeting and then structure it so they get paid a higher percentage if the deal closes. How can I assure my team that they are getting paid appropriately for how they setup meetings? What are other incentives I can use?

Jake’s answer:

For most service businesses, the number of meetings and touch points can correlate to closed deals. So paying them by meetings makes sense. The first thing I would suggest, however, is to scale it based on the type of meeting it is.

Define Your Meetings

You should define the various meeting types your business has (informative, discovery, etc) and then make sure you are paying based on the type of meeting. And to ensure that they are getting paid appropriately, you should make sure they track it themselves.

Each month, they should provide you with a report with the number of meetings they had, the number of follow-ups, how the deals turned out, etc. And then you can pay them on your pay periods based on that.

I don’t think it’s a good idea to incentivize any part of the product team with money tied to sales. You can incentivize them based on the number of features they roll out or something like that so that’s it only tied to something they have 100% control over.

Motivating Your Team

To motivate your sales team, create two goals. One that’s achievable and one that seems just out of reach. You can still pay them for the types of meetings they set, but oftentimes salespeople are highly competitive so setting goals can give them an extra push. You can then give bonuses based on meeting those goals.

They should be excited in the short-term but they should also be able to see how their efforts are putting them on track for long-term goals.

When it comes to hiring salespeople, the best people I’ve hired worked out the best when they haven’t worked in the sector that we’re in. Worry less about the industry or sector and think more about the type of product you’re selling.

You should only tie incentives to things a team member has 100% control over. Click To Tweet

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