Why its important to set sales foals and appropriate compensation structures ?
- Most sales people are provided with goals or quotas.
- In such environments, sales goals are integrated with sales forecasts in the business case
- Without these goals it will be more difficult to fulfill those assumptions
- Product Managers need to make sure that they negotiate with leaders of the sales organization early enough to get their products into the “bag” of products carried by sales force
- However, a quota or sales target is useless if salespeople are not compensated to sell the product
- Therefore, part of the negotiation is related to volume commitments, and the other part is to make sure sales people will be incentivized to make the sale
- Well trained sales people without an incentive will, at best, sell the product incidentally – not with purpose.
An understanding of setting sales goals and incentive structures early on if possible separately for each product line rather than overall sales quotas.
Source: Haines, S. (n.d.). The Product Manager’s Desk Reference.