Fixed rate + Percentage of plan fulfillment

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Maksudasm
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Joined: Thu Jan 02, 2025 6:45 am

Fixed rate + Percentage of plan fulfillment

Post by Maksudasm »

This model is an improved version of the traditional scheme. The main role here is given to the sales plan: the manager receives a percentage, the size of which depends on the volume of its implementation.

The main advantage of this motivation model is that it depends directly on the fulfillment of the sales plan, which makes it more effective than the traditional scheme.

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Fixed salary + Percentage of current customer payments
The essence of the model is the benefits of using our teacher database that sales managers receive a bonus only when the business owner receives money from the buyer for the purchased product.

Methods of material motivation of sales department employees

The advantages of this scheme include the fact that it motivates the specialist to control accounts receivable and timely payment. Among the disadvantages, it is worth noting that receiving money from the buyer in no way depends on the professional qualities of the manager, since the client has the right not to pay anything extra to the supplier at all, and, as a result, the latter's specialist loses his bonuses.

Salary + KPI
To motivate a sales manager to increase the client base and sales volumes, it is necessary to establish a direct link between his income and work efficiency. This is the meaning of this model: the owner introduces a bonus depending on the performance indicators (number of applications/calls, transition of clients from potential to regular, average purchase receipt, etc.), which the manager receives every month. There should be from one to three key performance indicators, and all of them should be realistically achievable, so that the incentive does not become demotivation.

Advantages:

focus on achieving results based on indicators that are important for the company;

increase sales;

the ability to change indicators taking into account the company's goals.

Flaws:

additional time will be required for KPI calculations and planning;

Unachievable targets demotivate employees.


Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
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