Sales Compensation--Fair Play, Fair Pay
Who should write this document? DeWese believes that the owner/CEO, the sales manager and the salesperson should write the document together.
Not all printers agree. At one such printing company, the vice president of sales and the CFO write the document, with no input from the salesperson: "I like [having a document] because it helps to direct the salesperson toward what he should be doing."
Finally, Chadwick recommends an annual review of the compensation plan and the agreement.
"By reviewing the plan each year, management and the participants will become more sensitive to how the plan does or does not support the company's performance over the course of that year," maintains Chadwick.
—Barbara A. Bucci
Aside from the usual expectations anyone has of his/her employees (like honesty, loyalty and hard work), what can you reasonably expect from the salesperson you have just hired?
Harris DeWese believes that some of the most important attributes to demand from your sales staff are diligence, personal development, fiduciary responsibility, technical expertise, closing skills (as in remembering to ask for the order), team participation and new account development.
In addition, printers should consider sales generated per type of service.
"Generally, a salesperson who sells more than $1 million worth of sheetfed business, for a $10 million sheetfed company located anywhere in the United States, is performing well. This amount would generate $650,000 to $750,000 in value added," notes DeWese.
By contrast, a good measure of satisfactory performance by a web printing salesperson is about $2 million in sales, because the run lengths are longer and the projects are bigger. Also, salespeople who sell publication printing should peddle about $6 million to $8 million in services.