commision idea for smaller accounts

[Robert Anderson]

Hi,

In the business I work in, we basically have two types of accounts: small
accounts and big accounts.

The big accounts require a salesperson as normally the prospect submits a
lead through our website and the salesperson is supposed to follow-up,
answer questions, etc., and close the sale.

With the smaller accounts the customer normally either signs up directly
from the website, submits a lead, emails, or calls in. The difference is
that these are generally easier to close, there are a lot of them, and for
salespeople they are a lot of effort to make good money.

Well, I was thinking as an alternative to route smaller accounts to the
customer service and technical support staffs and let them handle these. We
would pay a commision to create an incentive to close as many as possible
and to follow-up on leads. What do you think of the following idea?

customer support or service rep who closes the sale gets 50% of the
commision on a sale.

The other 50% is divided among the rest of the customer support and service
staff.

The commision is charged back against future commisions if the customer
leaves within, say, one-year. This provides an extra incentive for everyone
to work hard at both bringing in and providing outstanding service to the
customer.

Does this seem like a reasonable plan for dealing with smaller accounts so
the sales staff can focus on larger accounts? This is also a good way for
the customer service and support staff to make more money. It creates a bit
of a game.

One possible criticism might be that selling might distract them from their
normal duties and, my answer to that, is that they do a good job and our
products are good so their workload is well under control. Technical support
requests in particular are very low, which is good. We have good products
and we feel lucky to have such good customer service and support people.
Their extra time they have could be spent selling and making a game out of
making more money! I can't imagine anyone not wanting to play a game like
that.

[John A. Weeks III]

Post by Robert Anderson
With the smaller accounts the customer normally either signs up directly
from the website, submits a lead, emails, or calls in. The difference is
that these are generally easier to close, there are a lot of them, and for
salespeople they are a lot of effort to make good money.
Well, I was thinking as an alternative to route smaller accounts to the
customer service and technical support staffs and let them handle these. We
would pay a commision to create an incentive to close as many as possible
and to follow-up on leads. What do you think of the following idea?

I know if I was suddenly downgraded as a customer by having to call
customer support and wait in long phone queues, I'd find a different
vendor. If you cannot take my money and say thank you, then I'll find
someone who has the time to treat me that way.

What you could do is create an "inside sales" team. A group of
specialized sales people who manage these kinds of automated
or repeat orders. They would get a different incentive package
than the outside sales people to make it fair. I know a number
of companies that do business this way.

-john-

[Robert Anderson]

Post by John A. Weeks III
I know if I was suddenly downgraded as a customer by having to call
customer support and wait in long phone queues, I'd find a different
vendor. If you cannot take my money and say thank you, then I'll find
someone who has the time to treat me that way.

Our services are good and stable, and the last few months or so a lot of
documentation, flash demos, and so on have been produced as well. Customer
support requests are low. But I do see your point and you are probably
right. I have a lot of ideas and not all of them are good. :-)

Post by John A. Weeks III
What you could do is create an "inside sales" team. A group of
specialized sales people who manage these kinds of automated
or repeat orders. They would get a different incentive package
than the outside sales people to make it fair. I know a number
of companies that do business this way.

Right. Well, there are inside salespeople but they like to focus on the
larger sales. On the other hand we have created a bonus system so they spend
some time on the smaller accounts but it is hard since a larger account is
less work for more money for the salesperson...