In this conversation, a member of SCH brought up an interesting topic: how to incentivize sales reps to close contracts with specific terms or deal structure. cc @remi
Quoting the post:
In our case, issues at cash collection were usually tied to the billing interval, the contract duration and the customer’s terrority. We then included a system of penalty rates that reduced the standard commission rate of a deal if the terms agreed where deemed to increase the risk of invoice dispute or delay in cash collection. That has had a very good effect on Field Sales reps who started to naturally steer away from certain deal structures.
How do you prevent sales reps from negotiating deals and accepting contract terms that may create risks for the company?