Collections combined with sales

In many organizations the sales team is rewarded for every sale they make. The problem with this is they aren’t being incentivized to make sure the organization is able to collect on the sales they make.

Doesn’t it make sense for their sales commission to be based on the amount of money collected from their efforts? This would mean they receive commission on the amount of sales they make AND COLLECT.

The thing to remember is sales that aren’t collected not only aren’t revenue but they are a cost (for the good or service sold).

If the salespeople are responsible for both selling and collecting the money from the sale, they will work harder (and smarter) to make sure the buyer is credit worthy, is happy and makes their payments.

It might seem like this is being unfair to the salespeople but truthfully, it is the fairest way for the organization as an entity

Have a great day!

Lawrence

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