Senior Compensation Analyst, Beacon Retail Group
Ximena Keller· Sales Compensation Manager, Aurora Hospitality
Asked in Sales Compensation ·
Industrial distributor in the US, about 220 sellers, of whom 12 are global account managers. When a global customer places an order through a local branch, the local territory rep services it and the global account manager negotiated the frame agreement that made it possible.
Today we double credit: both get 100%. It keeps the peace, but we pay commission twice on roughly 18% of revenue and quotas have crept up to compensate, which the reps who never touch global accounts resent.
Is anyone splitting credit on this kind of deal and keeping both roles motivated? What split, and who decides it?
6 helpful · 2 insightful · 1 agree · 5 replies · 164 views · 2 following
Accepted answer· by Wren Zhang
I would keep double crediting and fix the cost elsewhere. Splits make people fight over the pie. Give the global account managers a different measure altogether, say total account revenue growth worldwide at a lower rate, and leave the local rep on full territory credit. You are paying twice on the same revenue either way, but each rate is set knowing that, so the cost is planned and not accidental.
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