Commission Strategy Checklist: Managing the Costs of Sales

Create a well-designed commission strategy that drives results.

People often jump to commissions to lower the cost of sales, but remember, fixed costs typically have a bigger impact. In both cases, you want to pay less in bad scenarios and potentially more in great scenarios. Plus, reducing commissions can have an irreversible impact on seller motivation, leading to fewer closed deals and missed revenue targets. Below is a commission strategy checklist designed to help you identify the best ways to manage sales costs while keeping the team motivated. 

Varicent-Commission-Strategy-Series-Managing-Cost-of-Sales_00001

Conclusion

Overall, the key to managing the costs of sales is to improve productivity. In addition to focusing your team on specific sales motions and planning for any downside, having an incentive compensation solution that reduces manual efforts and provides real-time visibility can help your team focus on driving revenue. Learn more about how the right technology can help you create effective compensation plans, check out our guide on How to Create Better Compensation Plans in 2022.