How to Motivate Your Sales Team: 14 Steps

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How to Motivate Your Sales Team: 14 Steps
How to Motivate Your Sales Team: 14 Steps

Salespeople face great pressure and can become unmotivated, so a sales manager must continually search for new tools to motivate them. Because there are stars, mid-range salespeople, and lazy people on every team, you'll need to find general strategies that will boost productivity at all levels. Commission structures, monetary bonuses, and creative incentives are critical performance drivers. In addition, he holds frequent meetings with staff and one-on-one with each other to maintain morale and fix problems before motivation dies.


Part 1 of 3: Create a commission structure

Step 1. Create a commission plan suitable for the company and industry

If you don't know what commission rates would be appropriate, do some research online about how similar companies in the industry set their rates. Use historical business information to set achievable sales goals that stimulate consistent growth at the same time.

  • If you haven't already, decide whether you will pay the sellers a salary or just commissions. In most companies, a small salary is offered in addition to commissions, but the appropriate decision will depend on the industry. If sales increase seasonally and a few months go by without high sales, you can offer employees a higher salary and a lower commission so they can maintain stable income.
  • If you want to change the commission structure, implement the new plan at the start of the new fiscal year.
Motivate Your Sales Team Step 3
Motivate Your Sales Team Step 3

Step 2. Implement a commission for those who produce higher results than expected

Increase the commission rate by one percentage point when the annual quotas have been met. This way, sellers will stay focused, instead of resting on their laurels after meeting their quotas. If you motivate the team with a higher commission rate, you will see a nice increase in revenue at the end of the fiscal year.

Motivate Your Sales Team Step 5
Motivate Your Sales Team Step 5

Step 3. Don't limit commissions

The limit is when a seller does not receive any commission after having reached the established quota. Commission cap is the fastest way to decrease productivity for top salespeople. Without an incentive to keep selling after reaching quota, the best traders will have no reason to achieve new milestones.

Step 4. Offer a higher commission rate for the products you want to sell

Use the commission structure to motivate the team to sell new models, excess inventory, or higher-profit products. In addition, avoid lowering rates for the most expensive products, especially those that produce large profit margins.

Commission structures that offer lower fees for the most expensive products immediately kill motivation. High-priced products are more difficult to sell, and there is no reason to strain if you won't get a bigger reward than selling a medium product

Part 2 of 3: Offer prizes and incentives

Motivate Your Sales Team Step 6
Motivate Your Sales Team Step 6

Step 1. Offer daily, weekly and monthly incentives

Temporary and frequent incentives can help sellers meet their higher quotas because they will be motivated to meet short-term goals. You could reward the most productive of the day with a coffee or lunch. Try offering a day off, gift cards, or club or gym memberships to those with the highest sales of the week.

Step 2. Set the pace with quarterly bonuses

Some common incentives include quarterly bonuses, which can help you set the pace for the team during the fiscal year. Additionally, offering quarterly bonuses instead of yearly bonuses can increase the productivity of underperforming salespeople.

Look at the quarterly bonuses as proof. Low-performing students tend to do better with multiple tests rather than one larger test. The tests help them stay on track throughout the unit

Motivate Your Sales Team Step 7
Motivate Your Sales Team Step 7

Step 3. Offer second-level quality rewards to mid-performing salespeople

Medium performers are the salespeople who are at the center of the group and make up the bulk of the team. Generally, top performers or stars take all the awards, so offering a good second-tier prize can increase the sales of middle performers, which will have a huge impact on the overall productivity of the business. team.

  • For example, the award for the highest level could be a prestigious golf trip and the award for the second level could be a family outing. The jackpot is more expensive, but the second offers the added value of spending time as a family.
  • It won't work if you only offer a lower quality version of the jackpot. The key is to give the second-tier prize an added value that makes it as attractive as the first.

Step 4. Offer personalized and unique prizes

Offer creative incentives like weekly gourmet food packages, dry cleaning for a year, or a work-from-home week. If in doubt, ask team members what they want.

Rather than offering just one day off, the company could cover the costs of a golf game, spa treatment, or other personalized activity

Motivate Your Sales Team Step 8
Motivate Your Sales Team Step 8

Step 5. Use career opportunities as incentives

Try hosting a lunch with a company executive for a salesperson with a high quarterly performance. You may find that the opportunity to meet and get input from a vice president or CEO is the best motivation for some workers.

Other career development rewards could be a prestigious industry conference, a development course, or even cover tuition costs for a study program

Step 6. Keep your incentive budget under control

Not all businesses can afford to pay a trip for their star salesperson. To keep the cost of incentives under control, you can approach nearby businesses, such as restaurants, salons, spas, or retail stores. Ask them if they want to exchange gift cards or create a bartering system.

  • Allowing the best salespeople to work from home for a week is also a financial reward. If telecommuting is impossible for this type of business, you can offer paid time off.
  • Try to get to know the employees to create the best incentives. For example, if someone who loves coffee has excellent sales figures, buy them a bag of good quality beans (within your budget).

Part 3 of 3: Maintain a motivating environment

Motivate Your Sales Team Step 1
Motivate Your Sales Team Step 1

Step 1. Schedule some frequent meetings with the sales staff

Stay on top of what's happening on the team with weekly one-on-one team meetings with each employee. Take advantage of these opportunities to praise them, cover areas for improvement, and remind the team of the importance of the product line. Plus, you'll be able to fix morale problems before they become detrimental.

Motivate Your Sales Team Step 2
Motivate Your Sales Team Step 2

Step 2. Focus on training and coaching mid-level salespeople

Sales managers and trainers tend to spend more time with high- and low-performing employees. However, star salespeople know when they need help and you are likely to waste your efforts on lazy people. Instead, spend more time and effort developing the skills of those in the team center.

Motivate Your Sales Team Step 4
Motivate Your Sales Team Step 4

Step 3. Create sales teams

Teams (especially those that share commissions fairly) encourage employees to help each other, share their knowledge, and work toward a common goal. Create a team with three or four employees who have varying levels of experience. This way, more experienced salespeople can teach younger employees.

Step 4. Publish the sales figures

Use your discretion to decide whether and how you will publish the sales figures. In competitive environments, this could motivate staff, especially lazy employees. However, in other sales departments, this could destroy morale.

You could also post individual earnings instead of gross figures. In this way, you can motivate employees to exceed their personal goals instead of having them compete with each other

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