New home sales strategist Myers Barnes is a featured blogger for BUILDERonline.com, the online source for the home building industry. Here is an excerpt from his most recent article on incentivizing sales performance, “Sales Team Compensation: Are You Overpaying For Under Production?”
A racehorse left on a track will run, but without competition or a jockey prodding it to race to the finish, it will have no reason to excel. You should be using compensation by objective (CBO)—the total compensation package, including base salary, benefits, commission, and bonus. They are paid according to performance. When your people achieve 100 percent of their objectives, they earn (not receive) 100 percent of their compensation.
To learn more about CBO and Barnes’ six-step process for developing your sales compensation plan, read the entire article on BUILDERonline.com here.
REALTOR® and general contractor Myers Barnes is author of seven books, including Secrets of New Home Sales Negotiation. He is the founder of Kitty Hawk, N.C.-based Myers Barnes Associates.