Sales Team Incentive Structure – Video

sales team incentive structure

I am describing shrinking gross margins!

In this video, I discuss sales team incentive structures. I am not referring to methodologies to motivate sales teams here. Instead, I discuss how the structure of your sales teams’ incentives could drive more profitability for your company…or help hasten its demise! In other words, how this can make or break your business! Too many companies focus solely on driving revenue, the top line number. But what about gross profit? So what if you sell $30 million worth of goods or services if you lose money the moment the deal is signed? If you are looking at your income statement and wondering why your gross margins are so low, poorly structured incentives may be the problem.

Problems with “Sell, Sell, Sell”

In addition, what happens when your team is motivated to sell, sell, sell but no one worries about collecting on the invoices? Hmmm. I think I see a cash crunch coming from all those outstanding accounts receivables. Just wait until business slows and the problem will hit hard!

Want more insights into what problems arise from poorly structured sales teams incentives? Oh, yes. You also would like to hear some of the solutions to those problems. What good does it do when someone points out all the issues but never suggests solutions? Not much. Therefore, this video addresses some of the problems, to raise your awareness level, then provides you with some solutions. It’s less than 5 minutes long, so it is succinct and impactful.

Let me know what you have done to guard against these issues. I’d love to hear from you!