Effective Sales Incentive Programs
Sales incentive programs are a great way to motivate your salespeople. Surprisingly, money is not always the best incentive for salespeople. Often vacations, computers, televisions and other prizes are a great motivator. If certain salespeople are constantly earning every incentive, both the employee and his or her supervisor know that the employee is doing an exemplary job.
As an employer, it is important to keep in mind that not everyone is motivated in the same way. In many companies, about 20 percent of the salespeople make 80 percent of the sales. It may be a good idea to make an incentive program that is geared toward the other 80 percent of the salespeople. After all, the top 20 percent are obviously already motivated. Incentive programs that are aimed toward the salespeople who are in the top 21 to 40 percent can drastically increase sales and company pro
Make sure that the sales incentive programs are simple. There has to be a clear and quick way to keep track of sales and rewards. Your employees are not going to make use of an incentive program that it complex or is too difficult to keep track of. Make sure that your employees understand what the incentive program is and how it can benefit them.
Be sure that your salespeople receive their rewards in a timely fashion. The most effective reward is an immediate one. Receiving a reward immediately after reaching a good causes excitement and fosters motivation. Make employee recognition a part of the reward program. There is no such thing as too much recognition. Making an example of the top salespeople gives other employees role models to look up to. Recognition can be the most effective and least expensive reward in your incentive program.
