As a chief revenue officer, you will be involved in designing sales compensation plans. What should your attention be focused on? 

Understand the true why for the CRO compensation plan

A compensation plan is not only meant to attract and retain employees. It is also meant to align revenue with business strategy. That’s why every company should have a CRO, whatever title name this person gets.

Chief revenue officers : avoid common mistakes when designing your compensation structure

First thing first, never cap a salesperson earning. The greatest performers want to perform. Don’t hold them back.

Secondly, don’t let finance build the compensation plans alone. As a chief revenue officer, you may have a better view on what will go one,  the real state of customers and leads, the market,… You are here to help finance decide how to incentivize sales representatives.

Lastly, use a compensation software ! Using excel to manage compensation plans will make you take shortcuts to make your life easier. But remember that compensation plans must be aligned on business strategy, not on the easiest formulas. This is when a software like Palette will help you.



With all that in mind, you can now design your commission plan. 

 

Need help to elaborate plans ?

Structuring a commission plan can be complex. Feel free to email us, we will help as much as we can.