You launch incentives and commission programs because Salespeople get thrilled about performing. They get thrilled to perform and make more money for you. These programs are launched in different avatars depending on varied needs. Here is the list of incentives and commission programs that companies usually launch and ones that Compass facilitates launching -
Sales Commission & Incentive Programs
1. Long term incentive program
A long-term incentive plan (LTIP) is generally a company policy that offers to reward employees for reaching specific goals that increase the organization’s revenue. In a typical LTIP, the salesperson must fulfill various conditions or requirements.
A SPIF, or sales performance incentive fund, is a short-term sales incentive used to drive immediate results. SPIFs are often considered in compensation planning but are not always mapped out. Rather, they are often spontaneous incentives that boost performance and sales over a short period of time.
When sales leadership decides to implement a SPIF, they choose a particular product range or service to focus on. These choices could be to build momentum in sales or increasing opportunities in the market. These sales programs would be needed to be completed within a specified time period.
A sales contest is a motivational program in which rewards are offered to salespeople based upon their sales results. There are three types:
Direct competition - the salespeople compete against each other and there is one winner.
Team competition - there are teams that are rewarded collectively for winning.
Goal rewards are given for achieving goals which may be won by more than one person
4. Team-based rewards
Below are the various types of team-based sales rewards:
Team profit sharing. Team rewards are tied to the team’s tangible outcomes such as overall company rating, improvements in organizational revenue, etc and these rewards are generally shared equally among the team members
Team goal-based rewards. There goals or targets set for each team that needs to be shown in short- or long-term performance outcomes. This is a single award predetermined by the organization that the team will win once they achieve the target.
Team discretionary rewards. These are spot rewards that are awarded to the team when the organization determines a team has done an outstanding job that is not part of the predetermined targets.
Team skill rewards. These rewards are given for teams who have collectively acquiring valued skills like collaboration, cooperation, product delivery, etc. regardless of team outcomes
Team member skill rewards. Individual team members are rewarded for acquiring team player skills like resourcefulness, unity, etc. mostly based on peer reviews.
Team member goal-based rewards. Individual team members are rewarded when they achieve the performance goals of their team contributions.
Team member merit rewards. Individual team members are rewarded when they make an outstanding contribution to the team.
5. One day challenges
Day challenges are short sales goals that are set with a duration of a day to accelerate sales on special and business significant days like - Black Friday, Christmas eve, etc.
6. Weekly Bonanza
Weekly bonanzas are sales programs that last a whole week and run during long holiday seasons like Thanksgiving and Christmas or End of Season sales.
Behavior-based rewards are run to motivate the salespeople to do more of a particular activity - like increasing the number of client meetings, sales documentations, etc.
8. Sales commission
A sales commission is additional compensation that the salespersons receive for meeting and exceeding the minimum sales threshold. These are generally given to incentivize salespeople to sell more and recognize great sales achievement.
9. First-year commission and renewal commissions
A first-year commission is a fee an insurance agent gets paid for selling a new policy. This payment is generally a percentage of the first year of premiums the policyholder pays on the new policy. On contrary, renewal commissions, are paid during the second and subsequent years of the policy.
10. Quarterly performance bonus
A quarterly bonus is a popular milestone in achieving the yearly targets and is a great way to encourage extra work, get the sales team more checkpoints to reaching their goal. These goals need to be realistic yet challenging while being aligned with your corporate strategy.
11. Annual performance bonus
A performance bonus is generally an additional compensation paid to the salesperson as a reward for achieving or over-achieving their predetermined goals This type of bonus is beyond normal wages and commission and is given out on a long-term basis for prolonged and consistent performance.
12. International /domestic conventions for Top Performers
Large sales teams even have contests that reward the top performers a trip to a fully sponsored international/ domestic convention. These rewards are seen to motivate salespeople to aim at listing themselves with the top-notch of their peers
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