Sales Resource Group’s 35th Anniversary: A Legacy of Excellence

35 Years at the Forefront of Sales Compensation Mastery

This May 1st, 2024, join us in commemorating a milestone that’s 35 years strong.

From our first client to our 550th project, Sales Resource Group has stood as a beacon of innovation in Sales and Incentive Compensation consulting. As we look back at a journey marked by unparalleled expertise and transformative impacts, we invite you to be part of a future where every sales team can achieve extraordinary success.

Issue #1: Owner Accountability

Ownership of the Sales Compensation Plan is a critical issue for a large organization. The use of incentives in compensation requires clear direction, assessable performance measures, the setting of fair and realistic targets, accurate and consistent tracking and reporting and payouts that are material and provide an appropriate return-on-investment for the company. Many individuals and groups play an important role in the design and evolution of Sales compensation within a company. Each must take accountability for their part in creating an effective Sales Compensation program. If used properly, incentives can be a potent force in eliciting desired sales behaviour and achievement of stellar results. If not managed well however, they can become a considerable waste of money and an exhausting source of management and field sales frustration.

Issue #2: Sales Compensation Governance

In order to create a world-class sales compensation program, a number of complementary processes and elements must be integrated. These include target setting, plan design, administration, sales structure, reward philosophy, performance management, and sales compensation principles. When incorporated with business goals and sales strategy, maintaining consistency becomes an essential requirement. This reliability and uniformity does not happen by accident. It is the result of development and compliance with a formal and effective sales compensation governance program.

Issue #3: Leveraging Technology to Revolutionize Sales Compensation

The sales landscape of modern business changes continually. As a result, effective sales compensation strategy is a crucial driver of performance and profitability. However, managing this process is often fraught with challenges, from outdated systems and manual processes to errors and misalignment with corporate goals. This whitepaper explores the complexities of sales compensation and presents Paragon SPM as a unique and comprehensive solution to transform your sales compensation management.

Issue #4: Auditing Sales Compensation to Improve Plan Effectiveness and Assess Risks, Rewards, Behavior, and Results

Sales compensation plans are critical for driving sales performance, aligning sales activities with business objectives, and motivating sales teams. However, the complexity and variability of these plans necessitate regular audits to ensure they remain effective and aligned with organizational goals. In particular, when preparing for a new design project for the coming year, auditing the current plan(s) is imperative to ensure the success of your initiative. Auditing sales compensation plans can uncover risks, highlight areas for improvement, and ultimately drive better sales results. This whitepaper explores the benefits of auditing sales compensation plans, compares different audit approaches, and provides expert insights on optimizing these plans for maximum effectiveness.

Issue #5: Selling Intangibles: Smoke & Mirrors or Cogent Value Proposition?

In today’s economy, the landscape of sales has shifted dramatically. With the rise of digital products, services, and intangible assets, sales professionals are facing a new challenge – selling intangibles. These offerings often lack physical attributes, making their value harder to communicate and quantify. However, with the right strategies and approaches, intangibles can be transformed into powerful value propositions that drive revenue optimization. Drawing on our 35 years of experience in sales compensation and strategy, this whitepaper explores the nuances of selling intangibles, identifies the inherent value within them, and provides actionable insights on how to effectively present and close sales deals involving intangible assets and products.

Issue #6: Draws & Guarantees

A Draw is an incentive payout that is subject to recovery. Payouts received by the individual are advanced or “drawn” on future earnings and therefore are to be recovered against future incentive payouts. A Draw is provided to address short term cash flow issues either at the beginning of an individual’s tenure within a sales incentive-eligible position or as a means of smoothing out income for salespeople with sales that occur with irregular frequency.

Issue #7: Issues & Best Practices Regarding Earnings Caps in Sales Compensation Plans

Earnings caps in sales compensation plans are often contentious, as they can lead to dissatisfaction. Caps are typically used to prevent overpayment, manage risk, or control uneven performance distribution. They’re suitable for new products with limited sales data, avoiding overpaying on multi-contributor deals, discouraging excessive sales beyond beneficial levels, and preventing risky sales behaviors. To maintain motivation, alternatives to full caps can be used, as caps may reduce sales effort once income limits are reached.

2024 SCDP Whitepapers Download