In order to motivate the sales representatives to higher level of performance it very important to create robust and lucrative sales compensation plan. There are essentially four components to be considered when developing a sales compensation plan – salary, commission, bonus and sales incentives and a well structured sales compensation plan can include all four components.
Sales Quota
Sales quota is the minimum sales goal to be achieved within a specific time period (that can be a day, a week, a month, or financial quarter or year). A sales quota may be minimum amount of monetary value or product sold. It is the responsibility of the management to sets the sales quota and the sales territory.
The sales quotas can be set for revenue, margins, new customers or any other goals. Sales quota can be assigned depending on the ability of the sales representative, past performance, market expectations or any combination. Note that the sales quotas set should be relevant to the company’s goals and individual sales representative and should be realistic and achievable. quotas that are set too high will either be demotivating or the sales representative will simply ignore the quota.
Motivating Sales Team
It is very important to appreciate the top performers but under no circumstance should the less successful sales representatives be overlooked. There should be a constant supervision on the less performing representatives by talking to them and understanding the reason for the struggle in reaching the assigned targets. It could be that they need more training, or perhaps they need to switch to a new sales strategy.
You have gone through various aspects of real estate business and running a successful real estate business. Real estate consultancy is one of the few businesses, where with little investments, adherence to basics & good customer service, only sky is the limit for success. Wish you all the best in your real estate endeavors!
