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How to Create a Powerful New Kind of Sales Incentive Plan.

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Presentation on theme: "How to Create a Powerful New Kind of Sales Incentive Plan."— Presentation transcript:

1 How to Create a Powerful New Kind of Sales Incentive Plan

2 Three-Part Series on Comp Fundamentals and Planning Plan Mechanics Building Your Own Plan

3 Five Principles of a Good Plan pay for persuasion protect the best reps prevent runaway earnings operate within budget provide performance insurance

4 Timeline design plan test document launch pay calculation

5 Customer Segmentation

6 Whale Curve

7 The Sales Comp P&L Most Common + Revenue - Cost of Goods = Gross Profit - Commissions - Expenses = Profit (hopefully) The QPM Way + Revenue - Cost of Goods = Gross Profit - Expenses = NBC (Net Before Comp) - Commissions = Profit

8 Plan rewards unprofitable sales GP Commission Plan

9 NBC Commission Plan

10 next time… Plan Mechanics

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