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Dear
Friends,
It has been a great honour
and privilege to be asked to
write a chapter in 'Secrets
of Top Sales Experts
Exposed', along with some of
the top sales gurus in the
country.
This extract may really
challenge some of you, but
if you want to improve the
performance of your team,
change the reward.
Regards
Tony Gattari
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Available Now!
Secrets of Top Sales
Professionals Exposed!
Read an extract from
the Book
Flat Salaries Breed Flat Performances
What do you mean
when you say, ‘flat salaries can only breed flat performances’?
Time and
time again, many business owners will find themselves questioning the
loyalty, ability and motivation of their team members (especially when
sales are down). They will even go to the extent of implementing
expensive advertising campaigns in search of new customers. Very rarely
will they question the company’s incentives, because often they see
their employees as a cost and not as an investment. Business owners need
to keep their team happy with incentives.
What
would happen if you were to introduce a commission structure, profit
share or bonus program? Do you think this would change your team’s
motivation? In our experience, we had one business increase their
conversion rate (the number of people who walk in the store that are
converted into sales) from a miserable 11 per cent to a respective 21
per cent in one day, after introducing a commission structure. I think
it is important to understand that flat salaries can only breed flat
performances. Why should an employee put in the extra effort if they are
on a good salary with perks?
Is there a
particular way to structure commission and incentives for salespeople on
the floor?
Your
income comes from the profits your business generates. So if you want to
align your goals with motivating your people, try to pay people for
increases in gross or net profit. If you pay for sales alone, this will
lead your team members into the temptation of discounting to get the
sale. For example, if a team member is paid a two per cent commission on
sales and they discount a $1,000 item by ten per cent, it only hurts
their pocket by $2, but for you that’s a $100 in set margins. You have
to get the motivations in-line so that it can be a win-win situation.
I get
asked by many people about setting up bonus and commission structures,
but there is not one structure that suits all businesses. However, there
are some basic rules that should be followed.
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It must be so easy to understand that the employee can calculate
how much they will earn in their head. |
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Have a commission or bonus structure that is a higher component
of the total remuneration package. |
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It must be aligned with the goals of the company. |
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Pay on profit, not on sales. |
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It must be paid on a regular and consistent basis. People have
to feel and touch the money in their hands to believe that it is
real and to want more of it. |
Featuring Written Material by Award
Winning Sales Professionals such
as...
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Tony Gattari (Author of
The Pillars of Business Success) |
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Paul Hanna
(Author of You Can Do It!
and You Can Sell It!) |
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Jenny Cartwright
(International Telesales Expert) |
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Wayne Berry
(Australasia’s Leading Sales
Trainer and Coach) |
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Chris Helder
(Author of
Stop Selling!
and
Streetsmart) |
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|
David
Cunningham • Terry Lee
• Belinda Yabsley •
David
Staughton
•
Paul Tonich
• Kirsty Dunphey •
Leigh Farnell • John
Blake •
Ari Galper |
Listen to Tony Gattari's Interview
|
Exposed:
The Top Sales People
 |
Order Your Copy Now! |
A
Vision for the Future
Australia's
premier business development company, ACHIEVERS GROUP, has teamed up
with Business Essentials, who is Australia's premier producer of
business related audio and video programs, to bring you a powerful
monthly educational program. 
