With the new plan in hand, compare your current and
offered compensation plans. Here’s where to start: 1. Calculate the earnings potential at some key bench- marks (for example, 75 percent, 90 percent, 100 per- cent, 110 percent, 125 percent, etc.) The new position should have greater earnings at nearly every level, especially if you are currently happy and well compen- sated. Remember to factor the pay levels and payout percentages for each role.
2. Consider all elements of the compensation struc- ture: under-plan risk, over-plan potential, special incentives, etc.
There should be a balance in both risk and reward. Some compensation plans may be crafted so that there is high risk to the associate but high reward when the rep overachieves. Pay specific attention to such concepts as threshold, excellence, exceptional deals, etc. Threshold is the minimum level of performance needed for commission to be earned. At the point of threshold, pay attention to what level of compensation is being paid out and how quickly it escalates with each percent of quota attained.
Excellence is the point at which either commission can be capped or a regressive commission rate can be ap- plied, essentially reducing the commission paid beyond that quota attainment. Exceptional deals, often referred to as “bluebirds,” may be called out within a compensation plan for further examination or reduced commission. While this is common, be clear on what the triggering criteria include to identify such a deal. Overall, there are many things to consider when switch-
ing roles and organizations. There are many financial aspects to consider, but don’t underestimate the non- financial aspects, as well. Will this role provide you a more exciting logo for your résumé? Does it position you for future roles in sales leadership? Figure out what’s important to you and understand why
SELLING TIP How to Ask Probing Questions
To help a prospect self-discover his or her pain, ask probing questions that secure psychological permis- sion from the prospect to probe deeper for the root problem. While the questions you ask are probing in nature, each will also establish the psychological per- mission you need to ask another question until you reach the real issue or problem that needs solving. The self-discovery questioning sequence is probe, permission, problem.
When the opportunity presents itself, probe deeper with these questions: “Tell me more about that.” “Could you be more specific about...?” “How long has this been a problem?” “How have you tried to solve this problem?” “Has the solution worked to your satisfaction?” “How does that make you feel?” When you hit sales pay dirt (the prospect’s emotional bedrock), your solution has the greatest value.
– JOHN O’MALLEY SELLING POWER MAY 2015 | 7 © 2015 SELLING POWER. CALL 1-800-752-7355 FOR REPRINT PERMISSION.
you’re looking to make a change. Collect all the informa- tion you can, and make the best decision for your family and career. Good luck!
Dave Egloff is a certified compensation professional. Email him at
SalesCompAdvocate@gmail.com to learn more.
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VIDEO: HOW TO ADAPT TO THE MASSIVE CHANGES IN SELLING, WITH DAVE KURLAN
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