Everyone has a different way of managing their extra sales commissions. Some people automate their sales process and assign it to steps which will lead to greater commission for everyone. It is a common practice to divide the commission equally among members of a team. This is a great method if both the sales people and the purchase person are honest with their data. This is a better option than the traditional way of dividing the commission among a single person who keeps a record of each transaction. It is a great way to ensure that the individual who made the transaction records it correctly.
1. Acknowledgment of Sales :
The first step in managing your extra sales commissions is to acknowledge the sales. It is a great way to automate the process of distributing commission to all members of the team. It helps you run a smooth business and at the same time save time, effort and money. You should acknowledge all of your sales in a timely manner. It is simple to automate this with commission software. You should record the transaction in your accounting software. The percentage of commission that you want to pay out should go through a calculation based on the product price, quantity and sales person.
2. Deliverable of Sales :
You should make sure before making a sale that you have delivered what was ordered. You should only deliver what you were supposed to deliver. You need to be able to track and ensure that you are delivering the right product with the right quantity on time. Tracking products is easy with a barcode tracking system or photo system. This will ensure that all of your invoiced customers get what they ordered and when they ordered it.
3. Compensation of Sales :
You should be able to track all of your sales in an organized manner so that there are no questions in regard to how much is to be paid out for each sale made. It is important that the sales commission is paid out accurately. Your software should be able to keep track of all the transactions that have been made. It should be easy to determine what the sales price is and how much commission will be due based on that percentage set. This process needs to be automated so that it is easier on the sales people and purchase people. It will help to create less confusion in regards to extra sales commissions .
4. Recurring Sales :
When you have recurring sales, you should have a system in place to track each one of them. You need to be able to calculate the revenue and then how much commission each one of your team members is due. It is very important that you maintain accurate records when it comes to recurring sales so that all of your extra commissions will be paid out on time. You need to make sure that each team member is paid out according to the revops framework and not just the volume of sales they have made over a certain period of time .
5. Discrepancies of Sales :
There may be times when one person in the team has more sales than the rest of the team. You should have a clear understanding of how to distribute the extra commission in that situation. Depending on how you decide to pay out this additional commission, you can automate the process using software and create an agreement among your staff members. It is important that you have a clear understanding of how to handle this situation before it arises. Having a clear and agreed upon solution will help alleviate any confusion and misunderstanding among your sales staff.
ElevateHQ is a software company that creates software that helps you manage your sales process. It is focused on making the commission road smooth for all salespeople. We automate every aspect of tracking your extra sale commissions and pay them out automatically to each member of the team accordingly.