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Napoleon is attributed with telling his Generals that "an Army marches on it's belly" - I will take credit for "a sales team marches on it's compensation plan". It takes true integrity to step-back and remove the emotion that is understandably associated with commissions. But, that is what we must do to create an environment of sustainable growth. Both employers and employees need to give a little to ensure the business is profitable. EMPLOYER'S PERSPECTIVE: Many of you own or make the decisions within smaller businesses and can, therefore, take control and be more flexible. Please try to learn from the errors so frequently made by larger organizations. If you are working within a large organization this is your chance to make a name for yourself by breaking out of the cycle and being responsible for developing a plan that generates sustainable growth. Do not forsake profitability for growth - find a way to secure both. Regardless of the size of your company you must understand that the reward associated with any sales position must out-weigh the risk. Good sales people are as important as good customers and should be treated in a similar manner. Never resent the money being made by your sales people, without them you have no customers and no growth. If any of your colleagues resent the sales team please remind them they can always pick up a bag and join them. EMPLOYEE'S PERSPECTIVE: If you are on the up-side of the cycle, be smart, make sure you are saving as much money as you can. Step-back and try to understand that unless the growth you are helping to generate for your employer is profitable it cannot be sustained. Try to honestly assess whether, if this was your business, you would pay the sales people as much as you are being paid today. If you are on the down-side of the cycle remember we are all volunteers either make the decision to stick-it-out until the cycle changes again or get another job. Sticking it out is usually the best option, because commissions are cyclical and eventually the big payouts will return. Whether an employer or employee, happy or frustrated please take the time to read this article and learn from history to ensure you do not repeat it. So what do I mean by Frustrating inevitability of a Compensation Cycle? Well, it is quite simple: oA company needs growth so it designs a compensation that rewards growth.
oThe plan generates that growth, the sales people are rewarded for their efforts. oThen someone decides, sometimes correctly - sometimes incorrectly, that the sales people are being paid too much. oThe plan is then changed to lower commission payouts - which it does. oThe lower payouts cause a lowering of morale, which leads to a decrease in productivity. oThe decrease in productivity leads to an increase in quotas (increasing quotas does, to a degree, increase sales. Although, at some point the law of diminishing returns comes in to play) which causes more morale issues - finally leading to employees leaving the business. oUsually the first to leave are the highest producing sales people, those who enjoy their current standard-of-living and find a new job, with a new compensation plan that allows them to maintain that standard. oBecause some of the top performers leave, growth slows again and quotas are increased again the cycle continues. oAs an additional reaction to the employee turnover and lowering growth front-line sales people and their managers are placed on corrective action, which causes more employees to leave and further reduces growth. oAt this point the hiring managers are forced to lower their standards because the reduction in attainable commission, resulting from the changes in quotas and payouts, no longer attracts candidates with the skill required for the position. oNew hires struggle and do not ramp-up as quickly as their predecessors, growth continues to slow. oThis cycle continues until a decision is made that "we need growth, at any cost" then the quotas are lowered the payouts increased and growth begins again. In an effort to attract better quality candidates the business further increases payouts, until finally commissions are back to where they were in the first place. oAnd so the cycle begins again. To read more about this subject please join us at [http://www.integrity-sales-leadership.com]
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==== ==== Hello, Affiliate marketing can be a very rewarding career, if done right An affiliate/publisher in an affiliate network like commission junction can have a lot of difficulties especially if they are new to the whole affiliate marketing arena. Its so surprising how many affiliate marketers come into affiliate marketing thinking that they are going to strike it rich on their first day. Check this site. http://commissionignition.biz/ ==== ====