1, barbaric expansion period
There are only three or four people in your company and seven or eight guns. How to open up your own world in a market with many competitors? We should stimulate these young people, and there will be brave people under the reward. So after roughly pricing, you make a sales policy: the monthly basic salary of sales is 1000 yuan, and the commission is 30% of the sales.
A few sellers go out early and come back late, working day and night, and your products gradually have some sales in the market. The sales staff also worked hard and everyone was happy.
2. Introduce cost accounting mechanism.
After a while, you found the problem: why did the company's sales keep growing, but it didn't make any money? You secretly investigated, and found that it was sales to get more commission. No matter how profitable the product is, as long as it can be sold, it will even lower the price with customers. As a result, the sales still got a commission, but the company lost money, because you only calculated the production cost of the product cost, but the labor salary, financial cost, management cost, sales cost and so on were not accurately calculated, and finally the goods were sold, but no money was made.
So you found a full-time accountant, and together you accurately calculated the cost of the product and worked out the ladder price of the product. Moreover, the sales system has also changed: the basic salary remains unchanged, and the commission is no longer calculated according to the sales volume, but 50% of the profit.
50% profit sharing, your heart is bleeding. However, because of the great resistance to institutional change, if it is less than 50%, all the salespeople will resign, so you have to accept it first.
After the new system comes out, employees will choose a suitable price between transaction and profit when selling products, so that they can sell products and get commission. You can rest assured that everything will be on the right track slowly.
3. Quality and brand promotion
With more and more customers, more and more advertising and marketing, your market share has gradually increased, and your product popularity has also been greatly improved, gradually forming a word-of-mouth and brand effect, just like a new star rising in Ran Ran, Ran Ran.
At this time, you are in high spirits and feel good about yourself. But once you came back to the office because you forgot your key, and found that the salesperson was chatting with melon seeds. Although they saw you coming, they soon parted. However, the doubts in your heart are gradually increasing. How did your former teacher of tiger and wolf become a lazy little white rabbit?
You pondered for a long time in the office, smoked half a pack of cigarettes, and called an entrepreneur friend for advice before you came back slowly. After the original product was recognized by the market, customers often come to the door on their own initiative, and the sales staff can get the list by answering the phone every day, and then run slowly without going out. Who doesn't want to get paid easily?
This can't be done. If you still get such a high commission when you don't work, you will reduce the sales commission from 50% to 30%. This time, sales quit, and some of them resolutely left their jobs, so you have to recruit new people. Even so, you think your decision is correct.
4. The characteristics of regional industries appear.
The scale of the company has been further expanded, and your products have done quite well in the north, Guangzhou and Shenzhen, so you decided to expand the region and explore the western market: Qinghai, Xinjiang, Sichuan and Yunnan-Guizhou, all of which are in great demand.
You called a sales meeting, hoping that someone could bravely shoulder the heavy burden, but the managers who are usually passionate now bow their heads and say nothing. What happened? Talk to Manager Wang in East China. Manager Wang said: the western economy is still underdeveloped, there are few customers, it is difficult to open up the market, and the travel expenses and time costs are high. It's not that the brothers are incompetent, but that the * * * army is too cunning.
You think, you are fooling me, not only because the market there is small, especially in the early stage, sales may be ugly, so sales will pay the same or even more efforts, but get less commission. Who will drop the fat from his lips and chew a bone without meat?
5. Exchange bonus for commission.
At this point, you feel as if the incentive system needs to be reformed. So you propose to change the sales system to: basic salary+bonus.
But what is the ratio of basic salary to bonus? You proposed a ratio of 8:2, and everyone disagreed. After repeated communication, the basic salary was finally determined: bonus =6:4.
The basic salary rose to 5000, and the commission was changed into a bonus. According to the degree of regional economic development, set different regional sales targets, such as Shanghai's annual sales task of 5 million, Qinghai Xining 1 10,000. In the case of completing the annual sales task, everyone can get the same bonus: 40 thousand yuan. If you don't achieve your goal, you will get a bonus in proportion. For example, if the target in Shanghai is only 50%, then the sales bonus will be only 20,000 yuan.
5. 1 Set the minimum sales target
After the introduction of the new system, it soon encountered problems. Some sales can achieve 100%, while others can only achieve 30%. This can't be done. There will be a bonus if the task is not completed. So you modify the bonus system as follows: you can only get the bonus if you complete more than 60% of the sales target, and you will get the bonus in proportion if you complete more than 60%; Below 60%, no bonus.
5.2 develop excess bonuses
After a while, when analyzing the data, you found the problem: the sales in each quarter were basically completed as planned, neither exceeding the standard nor too bad. Even the company's star sales are the same. In the past, his sales were much higher than others.
You patted your head, too Even if I do more, I can only get so much bonus. In that case, why do we need to do more? At least I've been in sales. You ha ha smile.
So you change the bonus system to: the part that exceeds the sales target has an excess bonus, and the bonus package rewards more. For example, if the sales target is 5 million, and you achieve 6 million, then the bonus beyond 1 10,000 is 4 * 100/600 * 2 = 1.33 million, which is twice the reward ratio within the sales target.
In this way, the enthusiasm for sales has been rekindled, and you are secretly happy. Unfortunately, it didn't take long for new problems to emerge.
5.3 Limit the bonus ceiling
Soon, you will find that some sales in this quarter can achieve 5, 6 times or even 10 times of the target, and get a very high excess bonus at once, but you can only barely achieve the target in the next quarter. It turns out that the sales in the next quarter or even the whole year will be completed in one month, because you can get a very generous bonus.
You don't know what to do, because this not only leads to the instability of sales performance, but also leads to the waste of resources and low efficiency because the value chain such as production and procurement needs to be coordinated in advance.
In order to prevent this from happening again, you changed the bonus system: you set the maximum bonus, and the bonus ceiling is 300%.
When this policy came out, there was an uproar. The sales star of the company decided to leave with your sales backbone from the start-up period. He didn't look back at anything you said.
6. Short-term behaviors bring risks.
The rest of the sales staff quickly adapted to the new system, and you were happy. I hope nothing will happen again. Then something happened.
Because the company and its products are famous, many customers have high expectations for the company's products. In the process of communicating with sales, users say that your product has all the functions of other competitors. Sales said yes, we are the conscience of the industry, so we signed the contract. Actually, you don't have a Bluetooth connection. After receiving it, the user found that it was inconsistent with what he talked about at that time, so he complained to the Consumers Association about you.
Sales for short-term benefits, casually promised to customers, including product performance, after-sales service, delivery and so on. All he has to do is sell the products and let other departments wipe his ass. This behavior not only damages the company's image, but also makes other departments complain.
Therefore, in order to make sales proceed from the overall situation of the company, you have formulated a series of behavioral indicators, including customer satisfaction, repayment rate, scores of other departments and so on. And integrate this part into the incentive system: in the past, basic salary: bonus =6:4, but now it has become basic salary: bonus: behavioral indicators =6:3: 1, and this part of behavioral indicators will be completed by the end of the year.
7. There are more and more product lines.
With the development of the market, under the condition that the brand is recognized by customers, you have developed more products to market according to the market demand.
Newly developed products need to occupy the market as soon as possible and form a first-Mover advantage. So you asked sales to put new product sales first, but a month later you found that new product sales were pitiful.
What's going on here? It turns out that the old products have been recognized by customers, and sales are not allowed to spend a lot of communication costs to get orders, while the new products have not yet established customer awareness, and it takes many times of communication, comparison and quotation to get orders. Salespeople are prodigies and know how to maximize their own interests. But this is a strategic new product launched by the company. You want to win this battle. What should I do?
Still have to consider from the root of the sales system, to talk about feelings and vision, but for sales, interests may be more important, you and your sales are just interests.
So, you reformulated the index according to the weight of the product: product A* weight+product B* weight = index. The future strategic goals are reflected in the sales targets, and then realized through sales behavior.
8. Introduce the partner system.
Your enterprise is now very famous in the industry, and the market for many products tends to be saturated. At this time, the market structure has been basically determined, and the list that sales can get is basically fixed.
As a result, the old sellers began to slack off again, and the market was so big. No matter how hard they try, there is a limit. But you are the boss, and you are in a hurry. What should we do?
At this time, you have known many consulting professionals, so you consulted Liu Run, the founder of Runmi Consulting. Teacher Run gave a suggestion: At this stage, you and your backbone should not be the same interest group, but at least the same enterprise should be established, and the partner system is an effective tool to establish the same enterprise.
So, you gave the sales director a certain share and made him a risk-taking shareholder. For the part that exceeds the sales target, the profit commission method is adopted. The sales director decides the distribution of excess profit commission and shares a certain proportion with the sales staff.
This policy has produced results. Under the present circumstances, your sales have only increased a little. You feel lucky, it seems that you are also a half management expert.
Every year, salespeople have to set their goals again. With the ratchet effect, some sales are no longer serious about the sales target, and they can't finish it anyway, so they make promises at random.
In order to make sales set goals rationally, you also listened to another suggestion from Liu Run: betting on funds. The specific gameplay is like this:
Salespeople set up a gambling fund at their own expense. If the team achieves its goal at the end of the year and the gambling money is returned to the sales, the company will give the team and the gambling money equal bonuses, and the sales will be divided according to the proportion invested at that time.
If it can't be finished by the end of the year, I'm sorry, the gambling money will be confiscated.
At present, many products and indicators lead to a complicated incentive system, and many sales can't directly calculate their own commission, so they can't calculate their due bonus according to financial accounting until the end of the year.
The establishment of the partner system makes the company and employees become the same subject in their careers, and the enterprise enters a mature stage and its performance reaches its peak.
When you look back on this journey, you will secretly sigh that entrepreneurship is really a point of no return, and the incentive system is a game with sales. Only when the interests of enterprises and employees are consistent can we achieve incentive compatibility, from the same interests to the same career, or even the same fate.
Can we take a break? You smile at yourself. The products of the new subsidiary have just been developed. It seems that this incentive system has to be repeated. Of course, this matter will be handed over to the CEO of the subsidiary.