{ "media_type": "text", "post_content": "New to the Bowl, greetings to all. I have a question for the sales leaders in the group about the design of sales comp plans. We are in professional services and our customers are about 50:50 retained and project-based. As such, we have an appetite for steady new business acquisition in addition to a need to provide excellent account management. Our gigs are usually in the 150K-750K range. Our BD process is very consultative, 99% of our leads are inbound. <more...>\n", "post_id": "61e1cde5b25b240038fefa44", "reply_count": 3, "vote_count": 4, "bowl_id": "5787dd60a3f35c130082b851", "bowl_name": "Sales", "feed_type": "crowd" }

New to the Bowl, greetings to all. I have a question for the sales leaders in the group about the design of sales comp plans. We are in professional services and our customers are about 50:50 retained and project-based. As such, we have an appetite for steady new business acquisition in addition to a need to provide excellent account management. Our gigs are usually in the 150K-750K range. Our BD process is very consultative, 99% of our leads are inbound. <more...>

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Our sales execs are paid a pretty decent salary, plus a 4% commission on sales, and earn between $150-225K done and done, with good benefits. We're considering revising their commission plan to gradually reduce the commission paid on accounts they bring in, shifting some of that commission to the Account Management side, in part to incentivize them to keep selling and not sit back on a book of business that's paying them over the horizon.

Don’t reduce their commission on renewals because that incentivizes them out the door. Keep the renewal rate but scale it back if they don’t hit the new number. Tie the existing customer commission to future new biz growth. You want turnover and retraining costs then start picking a BDs pockets. The old adage that it’s more painful to have something taken away then to never have it applies here. There’s too many good BD jobs out there to mess with current comp as a blanket reduction. It’ll only ensure your less lazy reps find a new gig when you least want them to.

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