Happy New Year to all!

The setting of performance goals for 2017 should have been completed and communicated by now; nevertheless, some companies are still struggling to define performance expectations for the New Year, including goals for their Sales Compensation Plans.

The following are three ideas to assist you in making your plan a success: (1) determine the actual cost of the salesperson to your company, including their salary, benefits, T&E and G&A, making sure you cover those costs before the salesperson can earn any incentive compensation; (2) clearly document how commissions will be earned, as well as performance thresholds and any prohibitions as to when commissions will not be earned; and (3) make sure the company and the salesperson review, understand and sign the plan document; this is the law in some states and is good business in all instances.