The procedure for remuneration in the commercial department
Posted: Mon Jan 27, 2025 9:11 am
Most companies practice a model of work in which the sales department is actively engaged in attracting buyers, who are then transferred to the client department. Now the main burden falls on these employees, but the manager who made the conversion continues to interact with this buyer.
The system of remuneration of all team members should be developed taking into account the contribution of each link in the multi-stage sales process. Employees who attract new clients are required to make more efforts, therefore, it is advisable to pay them a small percentage of the turnover of all buyers with whom they buy a motorcycle owner mailing list interacted at the first stage of the sales funnel.
This approach allows you to turn to salespeople for help with full justification when current problems with clients arise, and to assign them meetings and negotiations to resolve problems that arise during cooperation.
As a rule, the system of remuneration of sales managers is a combination of salary, percentage of simplified margin or simplified gross profit received after concluding deals with customers attracted by him during the reporting period. Bonuses for fulfilling the plan, as well as a percentage of purchases of customers with whom he worked at the first stage are added to this amount.
In modern conditions, commercial departments are forced to adhere to strict economy, to reduce organizational costs as much as possible in order to increase profits. The needs of the consumer and the desire for complete satisfaction are put first, as well as the focus on long-term cooperation with existing clients, since it is always cheaper than attracting new ones.
Ways to Reduce the Risk of Fraud by Sales Department Employees
Unfortunately, sales managers master the techniques of deceiving employers even faster than the basics of the profession. Many do not see anything shameful in putting part of the money that could replenish the company's treasury into their personal pocket. The reason is simple: perhaps at their previous place of work, the management turned a blind eye to this state of affairs, because such loyalty allows them to pay employees of the sales department less, counting on their resourcefulness and ability to literally make money out of thin air.
To begin with, you simply need to convey your demands to the managers. Indeed, how should a new employee know that you will have a negative attitude towards his attempts to earn on price differences or kickbacks if you do not say so yourself? Set the limits of what is permitted, warn about the consequences for the revealed violations of the rules. In most cases, this will be enough, of course, provided that acceptable conditions for earning income in an honest way have been created for salespeople.
It is quite difficult to expose a manager who is used to earning on kickbacks. As a rule, we are talking about collusion with an employee of the counterparty, in which both parties receive their share of the corporate pie. If you perceive this as a method of stimulating employees and are ready to turn a blind eye to their desire to have additional income, that is one thing. In the end, this motivates employees to conclude as many profitable deals as possible.
If you categorically do not accept the fact of deception, even within controlled limits, attempts to earn money on kickbacks must be strictly suppressed.
The first step is to set the relevant requirements, for most managers this will be enough. Moreover, the condition you put forward must be formalized in the form of a corresponding order, familiarization with which the employees confirm by signing.
The second step is to fight those who do not consider it necessary to refuse the opportunity to increase their personal income and do not see anything bad in this. They sincerely believe that they are right when they sell goods at face value, and take more from the client and put the difference in their own pocket. It is not difficult to identify such fans of additional income, among the most obvious methods are control of documentation, attention to the behavior of the manager, collecting information from other managers and contractors.
The system of remuneration of all team members should be developed taking into account the contribution of each link in the multi-stage sales process. Employees who attract new clients are required to make more efforts, therefore, it is advisable to pay them a small percentage of the turnover of all buyers with whom they buy a motorcycle owner mailing list interacted at the first stage of the sales funnel.
This approach allows you to turn to salespeople for help with full justification when current problems with clients arise, and to assign them meetings and negotiations to resolve problems that arise during cooperation.
As a rule, the system of remuneration of sales managers is a combination of salary, percentage of simplified margin or simplified gross profit received after concluding deals with customers attracted by him during the reporting period. Bonuses for fulfilling the plan, as well as a percentage of purchases of customers with whom he worked at the first stage are added to this amount.
In modern conditions, commercial departments are forced to adhere to strict economy, to reduce organizational costs as much as possible in order to increase profits. The needs of the consumer and the desire for complete satisfaction are put first, as well as the focus on long-term cooperation with existing clients, since it is always cheaper than attracting new ones.
Ways to Reduce the Risk of Fraud by Sales Department Employees
Unfortunately, sales managers master the techniques of deceiving employers even faster than the basics of the profession. Many do not see anything shameful in putting part of the money that could replenish the company's treasury into their personal pocket. The reason is simple: perhaps at their previous place of work, the management turned a blind eye to this state of affairs, because such loyalty allows them to pay employees of the sales department less, counting on their resourcefulness and ability to literally make money out of thin air.
To begin with, you simply need to convey your demands to the managers. Indeed, how should a new employee know that you will have a negative attitude towards his attempts to earn on price differences or kickbacks if you do not say so yourself? Set the limits of what is permitted, warn about the consequences for the revealed violations of the rules. In most cases, this will be enough, of course, provided that acceptable conditions for earning income in an honest way have been created for salespeople.
It is quite difficult to expose a manager who is used to earning on kickbacks. As a rule, we are talking about collusion with an employee of the counterparty, in which both parties receive their share of the corporate pie. If you perceive this as a method of stimulating employees and are ready to turn a blind eye to their desire to have additional income, that is one thing. In the end, this motivates employees to conclude as many profitable deals as possible.
If you categorically do not accept the fact of deception, even within controlled limits, attempts to earn money on kickbacks must be strictly suppressed.
The first step is to set the relevant requirements, for most managers this will be enough. Moreover, the condition you put forward must be formalized in the form of a corresponding order, familiarization with which the employees confirm by signing.
The second step is to fight those who do not consider it necessary to refuse the opportunity to increase their personal income and do not see anything bad in this. They sincerely believe that they are right when they sell goods at face value, and take more from the client and put the difference in their own pocket. It is not difficult to identify such fans of additional income, among the most obvious methods are control of documentation, attention to the behavior of the manager, collecting information from other managers and contractors.