The Sales Management. Simplified. Podcast with Mike Weinberg Is Sales Compensation Aligned with Strategy and Driving the Desired Behavior and Results?
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Feb 17, 2025 Greg Stanley, a sales compensation expert from Accelerant Consultants, shares his insights on aligning sales compensation with company strategy. He emphasizes the need for compensation plans that reflect revenue contribution, not just attribution. Stanley discusses the importance of tailored compensation structures to motivate different sales roles and drive performance. He also addresses common pitfalls in compensation changes and the significance of involving salespeople in these discussions to maintain trust and morale. Tune in for practical tips on optimizing sales management effectiveness.
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Compensation as a Tool
- Sales compensation isn't a magic bullet for increasing sales or profitability.
- Consider organizational alignment, roles, management structures, and how compensation reinforces these elements.
Strategic Imperatives
- True strategy is more than just a growth target; it involves aligning financial models with market approach.
- Define a clear go-to-market strategy, then align your sales team and compensation accordingly.
Value-Based Compensation
- Incremental revenue generation, tied to net margin and company valuation, justifies high salesperson earnings.
- Focus on the value created for the company, not just the salesperson's income.
