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? Reduced expenses means more profit ? Declining revenue is OK if your profit is increasing. ? When your being paid on Revenue, reduced expenses can mean less revenue and less pay. ? You create margin by increasing sales revenue and meeting your expense budget. ? You have to spend money wisely to make money. Managing Expense Budgets ? Give everyone that you can track an expense budget. Make it their money not yours. They will spend their money more wisely than your money. ? If they have more sales revenue then they can have more money. Create percentages for each budget expense as a guide. Publish it. Create a risk/reward method of expense control. ? Hold 10% back for emergencies. ? Make budget control part of every Quota Management meeting. Ranking of Quota Performance Why rank performance? 1. Selling is a petitive activity. Salesmen must have the desire to win customer contracts. 2. Visibility of peer performance demonstrates successful results that can be achieved. 3. It creates a yardstick by which sales organization can measure themselves against others within their office, Region, and Nationally. 4. Sets expectation that everyone can and should do a better job of selling their products. 5. Way of establishing a recognition program based on sales performance. Ranking of Quota Performance Ranking of Quota Performance (Example) What could be ranked? Current Month YTD (Sept) ? Total Revenue attained (%) 103% 109% ? Product Revenue 1 (%) ? Product Revenue 2 (%) ? Product Revenue 3 (%) ? New Accounts (%) ? New Product Revenue (%) ? Expense Budgets (%) ? Forecasting Accuracy (%) Quota Performance Board Beijing Sales Office Name (Sales Revenue YTD (Sept.)* 1. Dan 138% 2. Allen 131% 3. Rick 119% 4. John 111% 5. Bill 109% 6. Tony 108% 7. William 105% 8. Paul 100% 9. Dick 83% 10. Tom 76% *Could also have a board for designated products How to use ranking to enhance sales ? Publish rankings every month in a news letter ? Rank by Sales office, Province, Region, Nationally ? Use in monthly oneonone meetings as motivation tool. ? Use in monthly sales meetings(office) to recognize sales leaders. ? Make it a positive tool, do not threaten with it. The implied threat is there. ? Use it in performance appraisal process to establish great, good, average, and not acceptable performance