How Does SalesVista's Commission Management Solution Enable Variable Pay Plans?

Commissions are a dynamic sales management tool, which means they must be flexible enough to change with the times. Commission plans, also known as variable compensation models, come in all shapes and sizes, but they generally fall under two broad categories: performance-based and activity-based.

Performance-based compensation is paid to employees based on their sales performance. Commissions are calculated from completed sales and typically paid to employees when they meet established sales goals. The danger of a performance-based commission model is the potential for unhealthy competition or unethical sales tactics.

Activity-based compensation plans take a long-term view of sales. Tracking sales activity in effective increments — including client calls, sales meetings, and other customer relationship management tasks — creates a model in which reps are rewarded for each step completed. Activity-based commissions emphasize best practices at every phase of the sales journey.

With compensation based on trackable sales activity, your business can keep more of your sales team working through challenging times. Transparency and flexibility are essential, but a variable comp plan may be a viable alternative to a more drastic, and permanent, reduction in force.

It’s easy to fall into comp plan complacency when you’re already comfortable with the status quo. But as economic tides shift, and sales talent seeks new and better opportunities, evaluating your current commission plan is the wise move.

A secure, comprehensive commission management platform can help you manage the complexities of variable compensation with enhanced flexibility, accessibility, efficiency, and financial control. Schedule a demo at SalesVista.com today.