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The Sales Manager should consider the existing business model for the product or service being sold while designing the Sales Compensation Plan Template. The Sales Manager should design a plan that fits the business model and sales cycle, is mutually beneficial to company and sales personnel, is understood by sales force, and more. Sales Managers should also weigh incorporating strategic issues as well as tactical issues while creating the AD1030-1 SALES COMPENSATION PLAN.
The Sales Manager should, after considering compensation options, models, and best practices, complete Part 1 of the Sales Compensation Plan by selecting and documenting the compensation plan policies to be employed. The Annual Salary Plan Table (Part 2) of the AD1030-1 SALES COMPENSATION PLAN should be completed to to align overall sales goals and sales expenses with sales force compensation.
The Sales Manager should review the Annual Salary Plan Table, and determine causes for discrepancies in the compensation plan and actual compensation. After reviewing the Sales Compensation Plan Template, particularly regarding Sections 3.1 through 3.3, the Sales Manager should determine necessary improvements in compensation policies. Adjustments and improvements should be discussed with Top Management and the sales personnel prior to implementing changes.