Definition of Sales Target:
A sales target is a sales tool that enables you to easily measure and estimate your opportunity contribution to your sales goal.
Types Of Sales Target:
- Sales targets by product
- Sales targets by market segment
- Sales targets by region
- Sales targets by profit
Sales Target Strategies:
- keep existing customers (e.g. a customer rewards program)
- attract new customers (e.g. marketing and advertising)
- sell more to existing customers (e.g. up-sell).
A realistic sales target is often based on a solid marketing strategy. You can help your sales staff achieve their targets by generating qualified leads and brand awareness from your marketing activities.
Sales Target Allocation:
- Group wise target allocation
- Individual target allocation
Sales Person Contribution:
If more than one sales persons are working together on an order, then contribution (%) should be set for each Sales Person.
Total % Contribution for all Sales Person must be 100%. If only one Sales Person is selected, then % Contribution will be 100.
Sales Target commission:
A sales commission is a sum of money paid to an employee upon completion of a task, usually selling a certain amount of goods or services. Employers sometimes use sales commissions as incentives to increase worker productivity. A commission may be paid in addition to a salary or instead of a salary.
Types Of Commission:
- High Salary, Low Commission
- Some company offer salesperson a high salary instead of high commision and offer low commission.
- Payment for Individual Sales
- If you’re a sales rep focused on your direct relationship to the customer and individual transactions, getting paid a commission for individual person is a great fit
- Payment for Territory Volume
- Some company set sales target based on area. If salesperson reach the territory volume then salesperson get a commision
- A Share of the Profit Margin
- Companies that sell services often pay their sales commission a percentage of the profits.
- Retail vs. Wholesale :
- Retail companies typically pay based on retail or wholesale sales, offering a lower percentage commission on retail sales or a higher percentage on wholesale sales.Some companies offer sales commissions based on company net profits.
- Payment for Hitting Targets:
- Some companies set sales target and increase your commission as you sell more and more.
Commission Rate:
There is not really any standard commission rate for independent sales reps, since commissions vary depending on what is required. Commissions for independent sales reps can vary from as low as 5%, to as high as 40%. It could be a percentage or a flat amount .
Commission Distribution:
Unlike sales target distribution commissions(%) are distributed to all team members. Commission distribution maintain a hierarchy .
Example, If A target is gotten by a team. Manager from the team distributes the target among the team member. If team member reach the target and get commission(%) then the manager will also get the commission(%) .
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