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Do your sales reps need luck to reach their Q1 quota?

Q1 is almost over. Are your sales reps on target to achieve their Q1 goals or do they need luck to find the pot of gold?

Creating a team of winners was part of your 2017 planning goals. Remember? The impact of having a winning team creates the necessary buzz in your sales organization you need to reach your growth goals, after all everyone wants to be part of the winner’s circle. For that to happen you need the majority of your sales reps at goal.

When designing your 2017 Sales Compensation Plans you had an assumption that at least half on your sales reps would achieve quota. How many are actually going to make it? When most of your sales team is way below quota, it has a negative impact on motivation and your team can even give up hope, causing your numbers to slip further.

Your sales quota is an integral part of your 2017 Sales Commission Plan design. Hopefully you created realistic, achievable goals and allocated those goals to your team based on real opportunities in their assigned territories and factored any seasonality into the Q1 number.

But missing your quota is only one of the problems with a poorly designed sales compensation plan. The cost of an ineffective sales compensation plan is enormous. These costs can be related to:

• Lost revenue because of confusing or misaligned sales compensation plans

• Overworked sales reps covering expanded territories

• Lost opportunities because of open or inappropriately covered territories

• Difficulties finding the right talent

• Cost of recruiting and training new hires

• Demotivation of remaining team

• Accounts and other employees also exit with that sales rep

• The bulk of your reps are below quota

• Commission expenses out of alignment with the revenue

Spend the time now to evaluate Q1. If you need some help, reach out to us and ask for hot off the press whitepaper:

Evaluate the effectiveness of your Sales Compensation Plans based on Q1 Results.