In the modern business world, there are a number of ways to motivate salespeople. There are cash or percentage bonuses. Outstanding salespeople can be offered promotions or other forms of public recognition of their work. Also, there are methods like incentive travel . A bonus scheme can certainly motivate sales people who work exclusively for the money. Some may be moved to sell more and better for only a few extra dollars or percent. Bonuses have a downside, though. Bonuses cut into profit. If the offered bonus is tempting enough, the entire department might end up earning it. The added revenue is good, but the expense adds up quickly. And it can be difficult to recognize the best performer when all receive a cash or stock bonus. Promotions and public recognition such as salesperson of the month will also work in some cases. Promotions are, by their nature, limited. This makes them a very competitive goal, which is usually a great motivator for sales people. Individual recognition also works, and is much less expensive while retaining quality salespeople. Both work better with a goal -based bonus scheme, but can help foster good-will and hard work among a sales force. Finally, competitive awards are a great motivator. They engage the competitive instinct salespeople nurture. Because only one or two need be awarded, they also cost less than a full bonus scheme. Offering a reward to the highest selling person each year or quarter is only one to 4 rewards. By dangling a big reward of high interest, the bonus rate can be lowered without complaint. Incentive travel is just one example of a competitive reward. The different motivational methods, used individually, can bring in more sales and keep salespeople happy. Combined, they can actually increase sales even more, while lowering the incentive expense.
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