Offering a certain commission on the sales that the reps make for their companies is a common practice followed by companies all around. Sales teams provide a certain sales target to their reps and on successful attainment of the assigned targets, the reps receive a performance bonus for their valuable contributions. They are given a certain specific period of time within which they are supposed to achieve their target.
The successful division of the commission among the reps is done with reference to a certain commission plan. The commission plan is made either manually through spreadsheets or through a certain sales incentive management software which is way easier than the spreadsheets. On spreadsheets, formulas and entries need to be filled but as far as software is concerned it is done easily through a few finger clicks.
There is a total contrast between using the software and using spreadsheets for making commission plans. There is a wide range of difficulties faced when using spreadsheets to make commission plans which are further eliminated and simplified through the software.
What are the difficulties faced when you make a commission plan manually through spreadsheets?
Let us discuss some of the difficulties faced while making a commission plan manually through spreadsheets.
- Commission calculations on spreadsheets are complex and hence prone to miscalculations. Spreadsheets work effectively for small-scale businesses but as the business scales from a lower to a higher scale, it gets more complex and difficult to do calculations. As a result, reps might not receive the actual incentive which they deserve.
- Sometimes teams and reps fail to achieve the sales goals because the spreadsheets consume a chunk of their time in fixing errors and pay disputes. Teams need to go back and settle every trouble and as a result, they have to get back more than they go ahead in their work. It is a major setback in using manual commission planning through spreadsheets.
How does Software eliminate all the difficulties faced by manual commission planning?
Using a sales commission software for commission planning and calculations means getting all your work done with just a few finger clicks. Following are some advantages of using sales commission software.
- Complete transparency: A commission software offers easy accessibility to data for the reps and teams thereby providing transparency. Reps can look into their performances and work accordingly.
- High accuracy: Since the process is fully automated, the accuracy that this software offer is highly accurate and credible.
- Better productivity: Since you are using the software you would not have to restructure or rectify the errors manually; the software would look into it all by itself thereby saving you a great deal of time which you can then use to increase your productivity.
There is much such software you could use for the purpose but of all the best software is provided by ElevateHQ. They take into consideration every single point mentioned above and thereby create an effective sales commission plan for your business.
More checkout: 7 Successful Sales Pitch Examples and Why They Work
