Table of Contents
- 1 What steps would you follow to achieve your individual sales targets?
- 2 What are some of the potential employee performance problems that can be caused by a straight commission based incentive plan?
- 3 What does monthly draw mean?
- 4 What is a monthly draw?
- 5 Should a salesperson’s pay be based on a fixed salary?
- 6 What is the main objective of writing a sales performance letter?
What steps would you follow to achieve your individual sales targets?
Come up with sales targets that are challenging but achievable.
What are some of the potential employee performance problems that can be caused by a straight commission based incentive plan?
A commission-based incentive plan often means that workers receive a salary, but commissions serve as an incentive for strong sales production.
- Advantage: Increases Sales.
- Advantage: Pay Tied to Revenue.
- Disadvantage: Unpredictable Expenses.
- Disadvantage: Overly Aggressive Sales.
- Strike Balance With a Blended Approach.
Do you have to pay back a draw?
The parties will then negotiate different commission percentages for sales made against the draw. In this arrangement there is no concern that the salesperson will ever be expected to pay back any of the monies earned as a draw. It is understood that the draw is for the sales person to keep forever and ever.
What problems can commission based systems cause?
Disadvantages of Commission-based Pay
- Becomes too focused on earning commission. Highly motivated salespeople can earn a lot of money, but in some cases, they can become too focused on the commission.
- Affects team dynamics. Commission-based pay can also affect the dynamics of a team.
What does monthly draw mean?
A draw is not a salary, but rather regular payouts instead of periodic ones. For example, an employee receives a draw of $600 per week, and you give out the remaining commissions at the end of every month. At the end of the month, you would pay the employee any remaining commissions.
What is a monthly draw?
A draw is an amount of money the employee receives for a given month before his monthly sales figures are calculated. After the employee’s sales figures for the month are calculated, the employee may keep any amount of commission he earns that exceeds the draw amount.
What happens when a company fails to meet its sales goals?
A company can only succeed when the employee and the company relationship flows with the correct pace. When the employee is not able to meet the expected sales goals, a letter is sent to the employee by the company warning him to improve his performance and reach up to the expected sales goals.
How to write a failure to meet minimum sales goals letter?
The following is the Email Format to be followed for a Failure to meet minimum sales goals letter. SUBJECT: Failure to meet minimum sales goals letter. Dear Mr./Ms/Mrs.______ (Name of the recipient) Letter.
Should a salesperson’s pay be based on a fixed salary?
They found that the more uncertain a firm’s sales cycle, the more a salesperson’s pay should be based on a fixed salary; the less uncertain the cycle, the more pay should depend on commission. Consider Boeing, whose salespeople can spend years talking with an airline before it actually places an order for new 787s.
What is the main objective of writing a sales performance letter?
The main objective of the letter is to evaluate the performance of the employee and warn him regarding the failure to meet the expected sales goals. This letter helps in checking the lacking arena where more effort needs to be manifested to achieve the required sales goals. Clearly, state the reason for writing the letter.