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Quick Q - if you get a higher quota yet no associate pay/commissions increase, you are working harder for less and more at risk of earning less that last year for increased effort. Seems obvious.
Seems unfair, is an imbalance of increased quota vs pay the norm?
Sales is normally based on year on year increases especially if you have repeat business, you need to keep that and push for more.
Indeed, business need to make more money every year. Yet my question is, is it normal for the front line salesperson to have an % increase in line with target, or not?
My target increases 10% every year. Has for the last 10. I’m paid 6% more now than I was 10 years ago. New starters are paid considerably less now than I was 10 years ago
the consolation is the stuff I’m selling has increased in price by a similar amount to the target.
Not the sales people I've met, even in a declining market they have pushed targets to be last year + for the same reward. though if you think it's unfair then probably best take it up with your boss and explain why you are worth more 😉
Standard. Incremental increase in revenue targets reflect the fact you should be retaining existing business (easiest), then growing existing accounts (harder), then winning new business (hardest).
The repeat business should just flow with minimal account management, account growth should come with good account management as part of retention work, and then good time management and prospecting should create the new deal flow.
Ultimately, sales is a risky business, it can be very well rewarded but you have to put in the constant work to earn it. There's no coasting - you're either going forwards or backwards.
Thanks Tom & Andy, so its basically the norm. I understand the role, Andy’s post is of course my current JD 🙂
Mike, this isn’t about me per se, I’m just wondering if its a trend in Sales roles regardless of industry.
Above quota contracts should be subtly delayed until the following year. I though this was fairly standard practice? Either that or you should be getting a higher commission for them.
For me every % increase in target came with an 'appropriate' rise in salary. After all, aside from maybe the first year in a new role do you admit you held back the year before or can you magic up a better product or more customers for it?
Although one place I had the misfortune to work in once decide that my next year's target would be 105% of my previous years actual performance (which in itself was about 200% of target) and a 3% increase in salary, so in effect I had to work 5% harder to earn about 40% less, and they did this oddly when my salary and bonus structure was contractual.. It all ended in tears.
Anyway, we're supposed to be negotiators and problem solvers, work it out. If you broke your neck to hit your quota or exceed it for performance related pay can you do the same again only even harder? What tools are they giving you to do that, what non-core tasks are they taking from you? Presumably they made money out of you last year.
Plus don't forget, any good salesperson worth their salt always has a few things in the top drawer for when there's a stretch target, a super bonus or a gap to fill......
Are you using Salesforce as a CRM? The Exactly plugin is a brilliant tool as it allows you to real time monitor each of your revenue pillars, so you can adapt your strategy throughout the month/quarter to focus on the areas that will earn you the most money. It's a genuine gamechanger if like me, you get a bit "numbers blind" looking at spreadsheets.