Here’s a question for you: Suppose you have one sales rep who sold $2 million worth of product last year and another who sold $1 million last year at the same profit margin. Who should have been paid more? If you said the one that sold $2 million, you are in the majority and may benefit by reading the rest of this article.

Many wholesale distributors become so frustrated with their sales force that they resort to paying directly for activities instead of results.  Others get into trouble by favoring percentages over gross profit dollars.  Avoid these common traps by making sure the proper prerequisites are in place for your sales compensation plan.

In the introduction to AED's latest sales compensation report, distribution consultant Mike Marks poses the following question: If you had to build your sales force from scratch, what would it look like? Would it end up looking like it does now?

Outside sales reps are ruthlessly efficient at maximizing their incomes while minimizing their efforts.  Two common laments from sales management are, "How do I get control over my sales people?," and, "No matter what new products we stock or market, they still sell what they are comfortable with, and to whom they are comfortable with."  Read more for a sales compensation plan that lets you gain control.