Do you dangle the carrot or show your reps the stick? At Falcon Group, we’ve thoroughly experimented with using positive reinforcement to improve results in sales and have a bunch of success metrics to show for it.
SPIFFs and other sales incentives are a phenomenal way of getting the absolute most out of your AEs and SDRs, but only if used the right way.
If you don’t have any SPIFFs in your #B2B start-up, tell me if I am missing out on something-
1. You have a perfect sales engine that cannot be improved further
2. Your VP Sales is not thinking about improving his/ her numbers
SPIFFs are used to drive behaviors, and here’s what we’ve achieved by introducing them:
1. 2x Avg ACV
2. 3x increase in annual upfront deals
3. 75% of AEs meeting quota MoM
4. Team aiming to get their targets done in the first half of a month, and then aiming for 200%
5. AEs leveraging their own network to prospect and close deals
All of this over and above an exceptional incentive plan. What’s your excuse for not having any SPIFFs in your #sales org?
Last day of the month hustlers, SMASH IT!
So, unless you have the perfect sales engine that cannot be further improved or you’re not interested in improving your sales numbers, this post is for you.
A company can only be as ambitious as its employees, and this is doubly true for your sales reps. So how does Falcon Group manage to drive ridiculous amounts of ambition using one simple tool — SPIFFs? To answer that, we need to dive deeper into what SPIFFs really are.
What are SPIFFs?
Firstly, don’t confuse or substitute a SPIFF for your general sales incentives. SPIFFs are monetary incentives that go on top of the general sales incentives included in your reps’ contracts.
A SPIFF or SPIF is short for Sales Performance Incentive Fund. The fundamentals behind a SPIFF sales incentive is that it allows you to drive desired behaviors and best practices that in turn drive revenue, all with just a dangling carrot.
So why did we at Falcon Group choose to take the carrot route? Our formula is quite simple — we take care of our employees, and in turn, they take care of the company.
For instance, at Falcon Group we make sure our SPIFFS are so lucrative that SDRs and AEs that hit our reasonable targets are even able to outearn their managers and directors. Spending all that money to motivate your reps to go the extra mile can yield exponential increments in your monthly revenue, provided you’re able to build the perfect SPIFF.
An added advantage is that it also makes it a breeze for us to attract the industry’s best talent from the other organizations whose incentive structures pale in comparison. And if you think you’re the best of the best, then here’s your chance to join our rocket ship:
Falcon Group is growing faster than ever, and I am looking to add the smartest account executives in my team- immediately.
If you’re a top-performer in the SaaS ecosystem and sell to the US (sitting in India), let’s tell you how our top performer makes Rs. 2-4Lacs in monthly incentives, in a quick call this week?
Just DM me how much money you made for your company in the last quarter, and we go from there.
Good Behaviors to Drive Using SPIFFs
Using lucrative spiffs with no objective behavior to drive is like shooting a gun with no target in sight. And when each bullet is a fat stack of cash, that isn’t going to be a whole lot of fun.
Here’s a list of good behaviors and best practices that we drive using SPIFFs to successfully achieve hypergrowth at Falcon Group:
1. Going Beyond Your Quota
The first step is always, always setting an achievable basic quota. An achievable quota is one that at least 80% of all your reps can achieve month in, month out, while every rep hits 100% at least once every quarter. Setting an unrealistic quota that’s above this level is like shooting yourself in the foot.
While your quota is covered by your basic incentives, you want your reps to go that extra mile. This is where you dangle the carrot. Most reps choose to settle with 80-100% of their quota and this can be a stumbling block for their performance, self-belief and performance is judged, break this and get 2k leads now, click contact us.