Large sales companies spend a lot of time each month calculating their commissions manually. Small businesses are not exempt from this laborious and inefficient task, as the manual computation of commissions is subject to errors and low levels of transparency.

Commission management software is an essential component of sales planning that makes the process of tracking commissions less complicated. Sales managers will, therefore, spend less time disbursing commission to their sales representatives.

Below are some advantages of the commission management software.

Boosting employee performance

Managing commissions using commission management software can have a direct motivation on the sales of the team. The software allows each person access to monitor their earned commission, from their devices at any time.

An efficient commission management system indicates all deals that have been closed, making the commission calculation process transparent. This will be a motivating factor to sales team members to improve sales, in order to earn more than previously earned.

Enhancing the accuracy of commission payments

Inaccuracies generated by outdated methods of calculating commission and compensation are a primary cause of financial losses in companies.

The use of accurate software ensures real-time access to data. This increases the efficiency and accuracy in the process of calculating and paying out commissions. Companies that have employed this software are more likely to pay commissions within two weeks from a sale being made.

Saving time with automation

Automation of the sales representative payrolls, including their commissions, saves the sales manager the headache of manual calculation. The staff can also freely focus on making more sales without having to, regularly calculate their commissions. The automation will save time, which will be of great advantage to the organisation as the number of sales per representative increases .

The payment of commissions causes fluctuations in the monthly wage payments. This makes an efficient management system, to ensure the cash flow is kept constant, a crucial requirement. An accurate and easy-to-use commission management software will ensure this process is smooth and automated, minimising errors and ensuring the sales representatives are paid timeously.

For more insights, such as the steps of establishing a successful sales compensation strategy, feel free to browse through our website.

It’s tempting to push your sales team to the limit, with attractive commission structures. If your employees are money-driven, they will undoubtedly work relentlessly towards the target. Yet you must be careful of burnout.

Nobody can give 120% 24/7. If they do they will likely achieve some impressive results at the start but before long, they will burn out and may even need time off.

So how can you set goals which challenge your sales team without over-working them?

Form practical plans

If you’re wondering how to set sales goals, the first step is checking that targets are realistically achievable during working hours. By signing off on sales goals that you know require more time than the employee has in a day, means you’re agreeing to let them work overtime and potentially run into trouble later.

Encourage time out

If a manager encourages their team to take time out, they will feel it’s ok to have other commitments in life. If an employee always sees a manager working late, they will believe that’s what’s expected of them too.

If you see someone in the office or online after working hours, make sure they know that they should leave work to office hours unless it’s a rare, once-off.

Reward your team

This also shows your sales team that working life isn’t all about sales targets and working all day, every hour under the sun.

Organising regular activities or nights out shows your team you recognise their hard work and it’s time to let loose and do something different.

Make use of your sales commission software

With easy-to-use, well-priced sales commission software, you can monitor targets constantly with individual employees. Ask their opinion on how they feel the month is going. If they are worried about their sales targets then work out a plan together to tackle this.

To find out more about how sales commission software can benefit your sales team, get in touch with Commissionly.

How effective are you when it comes to sales performance management? To be an effective sales manager, you need to do more than just monitor your team’s performance. You need to inspire them to go the extra mile and close deals daily. Here are 7 habits of effective sales managers:

1. They lead by example

How do you contribute to the success of your team? If you want to take your team’s performance up a level, you need to be part of the action. Effective sales managers don’t give orders from behind a desk — they show their team how it’s done.

2. They know how to calculate sales targets

How realistic are your sales targets? Are they achievable? Are they ambitious? Your sales targets need to push your team, but they also need to be within reach. This is a delicate balance and should be the driving force behind your sales performance management.

3. They’re smart about sales performance management

Sales performance management isn’t a box-ticking exercise. When it’s done right, it provides a framework to motivate each member of your team to success. Effective sales managers know this, and dedicate time to getting it right.

4. They’re flexible with their sales team

Each member of your team has something to contribute. Effective sales managers give their team some flexibility in their approach, enabling them to bring their own strengths to the table.

5. They take responsibility for both success and failure

How accountable are you? Effective sales managers know they are ultimately responsible for the results of their team. Not getting the sales you need? Start by looking at your own performance.

6. They use sales commission software

Sales performance management is a time-consuming process. Effective sales managers don’t have time to calculate commission manually each month. Instead, sales commission software is used to automate the task.

7. They create an inspirational working environment

Finally, effective sales managers work hard every day to create a working environment that inspires their team to take action. One that prioritises collaboration, communication and friendly competition.

Which of these habits can you implement today?

Earning sales commission is about understanding objections.

Overcoming objections is still considered key to successful calls and earning sales commission. However, time is often wasted using information or specific techniques in the wrong way. This occurs when the salesperson hasn’t truly understood the situation that the catch-all term ‘objection’ is masking.

The four things prospect objections actually are:

1. A simple question

All this prospect actually requires is a piece of information. But the salesperson misinterprets and turns it into a problem. Here’s a simple example. A customer asks: ‘How much is that xxxx?’ The person simply wants to know, but the salesperson interprets it as a price objection!

2. A doubt

This isn’t the same as a clear reason for not being able to go ahead. Gently question the doubt and an answer can often be found that provides the reassurance the prospect is looking for.

3. A misunderstanding

Here the problem requires you to correct the prospect without annoying them. One great technique to remember is the 3Fs: feel, felt, found. For example, ‘I understand why you feel that way. Others have felt the same. Here’s what they found…’ If appropriate, a specific example can be used. You’ll find a more detailed explanation here.

4. A genuine limitation

If there are areas that your product or service does not cover, or there are other alternatives, the key is to outweigh what can’t be done. You can do that by making what you can do more valuable, or less risky, than the alternative.

How sales commission is truly earned.

The first step is recognising where your prospect’s objection truly lies in the above four possibilities. The second is dealing with it effectively. The third is to move past it towards completing the deal. It’s not unknown for the third stage to be replaced by a question asking if your answer helped – simply encouraging the prospect to stay in that moment!

Just as these tips can help overcome the problems of ‘objections’, Commissionly solves commission payment challenges in many industries. Contact us now to request a demo or start a free trial.

There are more variables at stake in sales than just your company, your products and your prices. Many of these variables are actually essential to success, but vastly unappreciated by most sales teams. Here are the five essentials that will help you close more deals than ever before.

1. Hard work

Hard work is key to success in sales. Not just showing up at work, but being willing to outwork your competition. That means working hard on really understanding the product that you are selling, and working hard at getting to know your clients. If you are prepared to give your work your full focus and attention, you will see results.

2. Study to improve

Statistics suggest that if you read even one sales book, you will have studied more about your line of work than most of your competitors. Furthermore, you can make yourself stand out as an industry expert and trusted advisor by keeping up with current information on prospective clients.

3. Be persistent

Persistence can sometimes be the key to getting your foot in the door with a prospective client. If you are disciplined, varied and sensitive about your approach, over time, a prospective client is likely to give you the opportunity to pitch to them.

4. Communicate (in the right way)

Many people believe that email alone is an effective medium of communication, which is a big mistake. Face-to-face meetings or video conferences are much more powerful mediums of communication, as the prospective client can get a better sense of whether they want to build a business relationship with you.

5. Have the right backing

If you are not in a decision-making position, make sure that you have the backing of someone who can go forward with decisions before lining up the deal with the prospective client. Nothing is more likely to derail a deal than having to stall, while you try to get hold of someone who can actually give the go ahead.

At Commissionly, we’re really proud of our cloud-based commission software, so much so that we’d love you to try before you buy! To book your free, no obligation 14 day trial, contact our friendly team today.

On the ground level, your sales teams are the ones who keep the organisation running by driving sales to generate income. While some managers may argue against sales commissions and incentives, they are actually important in motivating your team to ensure they are doing their best to earn you revenue.

An organisation that has high revenues from sales is able to meet its goals of expansion since its products achieve their intended purposes. In order to achieve high sales, your sales team have to work extra hard since competition in the current digital age is not easy to overcome.

Below are some reasons why compensating your sales team is important in driving your sales.

1. Motivation drives commitment

A sales job is no easy task. If you understand this as a manager, you will appreciate the struggle your sales team goes through to bring in customers. Sales representatives approach a lot of potential customers daily. Out of these interactions, less than half end up making a purchase. In this highly frustrating job, any kind of motivation goes a long way in boosting sales representatives’ morale.

Since different types of people have different things that motivate them, using a sales compensation software will enable you to identify the best incentives to offer your sales team to achieve the best possible results.

2. They help to identify areas with problems

When sales representatives are allocated commissions, based on their sales, they will be more motivated to do their best. When lower revenue is experienced, it becomes the responsibility of managers to look for other factors influencing the decrease, as they can be sure that their sales team have done their best. Such influencers could be due to a lack of proper training, or the need for product improvement and possibly even a need for better deals.

3. Commissions foster friendly competition

In a firm with a sales team, commissions will give the team members competitive incentives and this will foster friendly competition. The friendly competition aids in collaboration as all team members have the mutual objective of making more sales. While at the same time they will be trying to raise their personal sales goals, to lead the pack. The organisation will profit from higher sales due to collaboration and competition.

4. Incentives bear both short and long-term positive outcomes

While incentives motivate the sales team to score more sales in the short run, they also have the long-term effects of creating long-term relationships with clients, helping with contract renewals and also assisting the company to break into new markets. The sales commission software helps achieve the above outcome which helps the organisation to be more profitable in the long-run.

With the above benefits of sales team motivation through commissions, you will be able to create a more energetic team that is guaranteed to give positive results. For the best sales compensation software to assist you in giving your sales team and customer incentives, feel free to browse our website for the best deals and tips.

Most sales managers spend a lot of time thinking about how to set sales goals. This is important, of course — but many don’t consider how their sales process fits into this task. If this sounds like you, here are five reasons you need to work on your sales process:

1. It provides your team with a framework to meet their sales targets

Whilst it’s important to allow your sales team some flexibility, an established framework makes your team more efficient. It gives them repeatable steps to follow — guiding the customer from a prospect to a sale.

2. It quickly integrates new members of staff into the team

A defined sales process minimises the time it takes to get new salespeople on board. They can observe the process in action, and quickly identify how they will fit into the business.

3. It defines how software fits into the equation

Software, like our sales commission software, can improve your sales process. It reduces time spent monitoring, tracking and calculating commission — freeing up more time for your team to focus on revenue-generating tasks. When you have a defined process, it’s easy to identify to see how software can help.

4. It helps identify areas for improvement

Similarly, a defined process helps you identify areas for improvement across the entire team. Are there any sticking points? Where are most prospects leaving the process? How can you tighten it up even further? All of this will help you learn how to set sales goals that actually get results.

5. It uses a proven approach to generate more sales

When you consider how to set sales goals, do you think about how your team will achieve them? A defined sales process gives your staff a proven approach to follow. This increases the likelihood they will hit their targets, giving you scope to improve them year-on-year to focus on what matters — increasing profits.

Sales commission software or if you prefer, sales compensation software that promotes making more sales. Sounds good, doesn’t it? Every salesperson knows just how important sales commission is. Therefore, having easy to use software that facilitates more time for chasing and closing deals is essential.

Creating more time to close deals

Having the right mindset is essential for all salespeople. If the sales commission software you use is complicated and time demanding, it will distract staff from their real goal. Yes, their goal from a personal point of view is to make money. But how is that done? By closing deals.

The advantages of CRM driven sales commission software

Keeping tabs on existing clients and having information readily to hand on prospective clients and your communications with them is vital. So, having a sales commission software package that is based on Customer Relationship Management rather than Comma Separated Values (CSV – typically spreadsheets) is a bonus.

One significant advantage of CRM sales compensation software is that it makes it possible to incorporate product catalogues. Most businesses have multiple product lines. Each product lines carries varying commission rates based on price and sales volume. 

The use of product catalogues is twofold. Firstly, it makes it easier to target your sales force toward specific products. You can put the spotlight on the product margins and revenues that you wish to promote. Secondly, it makes it easier for individual team members to track their progress in terms of sales commissions earned. Because of this, CRM driven sales commission software programs have the edge over CSV driven software.

Don’t forget your existing client base

Business and sales, in particular, is all about establishing good relationships and communication. The same goes whether you are talking cultivating new clients or expanding business with your current customer base. Far too many salesmen and women concentrate most of their activity on finding new clients. However, this can be detrimental to existing customers, who if truth be known, are your best source of new orders.

This brings us back to communicating. By staying in regular contact and recording where you’re at on the right sales commission software, you are nurturing new business. Besides new business, you will also be encouraging repeat orders.

To find out more about the best CRM based commission tracking software, book a demo or start a free 14-day trial today.

“Creativity is often the key to devising meaningful recognition programs that have an impact on individual performance and the bottom line.”

While Commissionly is one of the few CRM systems that offer native commission software, we pay careful attention to alternative modes of motivating and compensating sales staff that personify the competitive environment in the UK, Europe and the United States, especially with some sectors reporting talent shortages.

As Accenture summarily puts it “When it comes to motivating people toward great performance, it’s not just about the paycheck.”   Many sales managers have known or suspected this for years, especially in downturned economies when the selling cycle gets longer. Some companies may uncomfortably acknowledge that the number of calls necessary to close a deal has also jumped.   For instance, it is not uncommon to require six or more calls to close a deal in some sectors.

And conversion rates—moving from the initial call to the presentation stage, and then converting proposals to sales—are trending down for some industries, while in others the uptick in the U.S. economy may be moving them in the opposite direction.   Regardless, there will come a point in every small business lifecycle where they will experience some of the pain points above, which has a dramatic effect upon sales force motivation and performance.

“That leads to a situation where you have to know more and sell harder, but where you may be less effective in your overall success rates,” said Accenture. Traditionally higher commission and compensation rates may sound like the most sensible way to keep your sales force stimulated, focused and closing deals.

However, recent research indicates that this may not be the case with your sales force quenching for support in basic areas including sales enablement and tools, reducing quote cycle times, getting better documentation, and developing a product that is differentiated and easier to sell.

Modern authors like Daniel Pink, have also found compelling case studies in the software development industry which support the arguments above noting that one CEO decided to completely eliminate sales commissions after experiencing a protracted increase in commission complexity resulting from salespeople gaming the system and management constantly attempting to plug the holes.

For instance, salespeople would take advantage of early commission schemes by pushing sales into the time period most advantageous for them, by underselling one month to show a bigger gain the following month.   Soon the compensation software consumed large amounts of internal resources as management attempted to fight back, ultimately removing their focus from product and service development.

Frustrated by the process and results, the CEO decided to investigate eliminating sales commissions altogether, receiving at first, mixed and conflicting feedback from his sales force regarding this dramatic proposal:

“When I explained it to Tom [not his real name] he said, ‘It sounds like a really good idea. But James would never like it; he’s solely motivated by money. Remove the commission and he’ll leave.’ James said, ‘Sounds great. But it will never work with Tom. Money is all that drives him.”

Thus, according to Pink, not only were commissioned sales not leading to better performance, it wasn’t even the arrangement salespeople themselves preferred

The CEO decided to remove commissions and instead pay his sales force a healthy salary, which gradually resulted in increasing sales. Of course, this new scheme did have some casualties, with two salespeople promptly leaving. However most stayed and are thriving – including Tom and James, referenced above.

“Rather than relying on carrots [sell more and you can buy the new car] and sticks [don’t sell enough and you won’t be able to feed your kids], we are compelled to make our salespeople’s work more interesting, to set better goals and encourage teamwork,” said the CEO.

The result was collaboration and commitment increased and they became agents for the customer rather than a salesperson. While this strategy may not work in all industries it is worth acknowledging the drawbacks with the age-old use of commission structures.

According to Accenture, financial compensation—though not, strictly speaking, a physiological need—is analogous to the lowest tier of needs in Maslow’s hierarchy. It is basic and important, but it touches upon only one dimension of motivation and a comparatively low-level one at that.