SAFE Check for Sales Commission Plan

In working with a team designing a new sales commission plan, I created an acronym that I titled SAFE as a benchmark check to review when we were finished. This 4 step process serves as a measurement that the commission plan that was developed meets the criteria to deploy as Simple, Attainable, Fair, and Effective.

Simple. Commission plans are easy to understand by the sales team and easy to administer. Every salesperson should not need an accounting degree to figure out how much money they are earning. Any future revisions should be infrequent due to the danger of changing commission plans too often, you will lose trust and credibility with your sales team. This new commission plan should stand the test of time as your business and team grows.

Attainable. Commission plan goals are within the reach of each sales reps territory and number of prospects. Your commission plan changes should never drastically impact the lifestyles of your salespeople, or the byproduct will be that sales reps will first quit mentally, lose faith, and conclude that whatever grandiose purpose you claim your business has is all hype. Your plan should be viewed as motivating and realistic with your sales team.

Fair. Commission plans are viewed as a win-win by sales reps and sales leadership. Never allow managers to create an unfair commission plan because of their own insecurity and envy of how much money salespeople are making. If there is a lack of respect for your sales reps and what they earn, you have a leadership problem, not a commission issue. The final plan should be in the best interest of all internal and external organizational stakeholders.

Effective. Commission plans inspire sales professionals to give their all each day and drive a high performance culture. Whether it's to capture new accounts, up-sell current customers, or recapture lost market share, the plan points to the strategic goals you set. There is no need for the sales team to ever try to game the system, because it is viewed in their best interest.

Great salespeople are the lifeblood of your organization. Nothing consequential happens until a sale is made, and it takes best in class salespeople to scale your business to new heights and move it forward into the future. Treat salespeople respectfully by designing a commission plan that inspires them, and you will continue to earn their trust and loyalty.