Sales Compensation administration  

Sales Compensation Management

Sales compensation is typically the largest part of cost of sales. A well managed sales compensation leads to well managed sales cost.


Sales Compensation administration


Sales compensation administration is like payroll. Its a hygiene factor. No one notices if it is working well. Hell breaks loose if it does not. \n

Sales compensation administration is like payroll. it is a hygiene factor. No one notices, if it is works well. Hell breaks loose, if it does not.

Sales compensation administration includes:

  • Calculation of sales compensation.
  • Issuance of cheques, direct credit interfaces.
  • Communication to the sales team.
  • Providing access to the sales compensation statements.
  • Help-desk to provide any clarifications to the sales compensation related queries OR issues.

Sales compensation administration has to have following success factors:

  • Timely: the cheques and credits should be done on the committed date and time of the day.
  • Detailed statementing on how the calculation was reached.
  • Providing sales staff, with tools to calculate the compensation themselves. This allows them to do scenario building on how much their compensation will be given certain sales performance.
  • Detailed documentation (help guide OR readme) on how the compensation is calculated, the explanation of sales compensation reports, typical FAQs etc.