SALES COMPENSATION : New Business or New Business? PART 1

Sales compensation is a very complex issue within Repro circles and beyond.

In the past, many companies built compensation plans wrapped around the idea of getting new accounts. Others also added reactivation of old accounts who stopped doing business. Upon research, observation and conversations with many of you I've shifted my philosophy.

Recognizing the idea that it is getting increasingly more expensive to get new accounts rather than increase existing business, I believe we must develop compensation plans that reflect these trends.

In other words, continue to reward reps for new accounts but eliminate the conflicts caused by reducing percentages too much on existing accounts. The reality is that many reps stop calling on existing accounts because they get a smaller commission. Instead they spend 10 times more time "cold calling" rather than developing deeper networks within their current portfolio.

To be continued....