DNA of the Sales Compensation

The video series "The DNA of the Sales Compensation" offers a panoramic vision of the design of a Sales Compensation plan divided into 4 modules: Alignment, Technical Design, Stimulus and External Competitiveness & Internal Equity

ADN of Sales Compensation on video - 4 modules
By Federico López Saavedra, TMC Managing Partner

Language: Spanish

Module 1: Alignment

Pursues that the plan’s design corresponds to the sales-business strategy of the Company. Structure, roles and sales positions as well as indicators, must be correctly aligned. In simple words, design has to be observed and verify that it “does” what business and sales strategy indicates.

Module 2: Technical Design

Pursues to define payment system and the way it addresses sales forces, the payment mixes between fix and variable remunerations, the calculation formulas and when a sale is effectively produced.

Module 3: Incentives

Module 4: External Competitiveness & Internal Equity

Pursues that compensations correspond to market’s payment policies and that “equal” treatments are observed when distributing remunerations.

Modulo 5: Governance

It is referred to the governing structure that will govern the incentives plan. That is to say: formal approval of quotas, plan documentation, plan supporting technology and reports, among others.

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