Different Sales Incentives Plans for Promotion Consultants
Sales Incentive Promotion Consultants
There are different kinds of sales incentives given to promotion consultants. The sales incentives for promotion consultants will vary as per the nature of the product being marketed and the sales targets that are set by a company.
When we talk about sales incentives for promotion consultants, we are talking about ways to reward in order to motivate them to make more sales. The sales incentives for promotion consultants need to be designed in such a way that the promotion consultants find it easy to sell the products and are motivated to do so in order to earn the sales incentives.
Who Are Promotion Consultants
There are several features in relation to sales incentives for promotion consultants. Promotion consultants are people who are not direct employees of a company but are contracted to help with the marketing process.
Ordinary people or customers can be turned into promotion consultants. The sales incentives for promotion consultants need to be designed in such a way that a dual purpose is served. The sales incentives for promotion consultants should be such that the consultants can profit as well as the company benefiting from adding customers and increased revenue. Again, the sales incentives for promotion consultants should work in a sustainable manner and help to increase the performance of the promotion consultants.
Different Sales Incentives
There are different types of sales incentives for promotion consultants. The most common sales incentives for promotion consultants as well as for other marketing professionals are the annual performance bonus.
The sales incentives for promotion consultants in this form is an incentive that is calculated based on the performance after a year has lapsed. Profit sharing plans are a common tool as incentives for promotional consultants. Profit sharing plans, as sales incentives for promotion consultants, includes sharing the profits of the company from the sales proceeds as a fixed percentage that is decided as part of the contract. Such sales incentives for promotion consultants are discussed with them before they take up such roles in the promotion of products and services of a company.
Cash rewards are often given out as sales incentives for promotion consultants. When a specific goal is reached, the sales incentives for promotion consultants are given out in the form of cash or merchandise rewards. Again, other sales incentives for promotion consultants are vacation time, peer review plans or hike in salary.
Benefits and Drawbacks of the Annual Performance Plan
Every type of sales incentives for promotion consultants has its benefits and drawbacks. The annual performance bonus is an infrequent form of sales incentives for promotion consultants. This form of sales incentives for promotion consultants often leads to dissatisfaction as the employees find their appraisals at the end of the year not reflecting their performance fully. Often, such a form of sales incentives for promotion consultants makes the latter focus on what makes them look good in front of management even at the expense of the bottom line of the company.
Profit Sharing Plan
When it comes to profit sharing sales incentives for promotion consultants, such plans have the benefit of making the dual objectives being met.
The employee as well as the company benefits from such sales incentives. As the company profits increase and there is more money for bonuses, this is given out as sales incentives for promotion consultants. However, when there are lean times, the sales incentives for promotion consultants become poor and the latter becomes disinterested in the work. There are inconsistencies in the profits earned and bonus paid out at times in such sales incentives plans for promotion consultants.
Negative Versus Positive Reinforcement
When the sales incentives for promotion consultants are designed such that they are difficult to achieve, the sales incentives for promotion consultants will not work. The promotion consultants will feel discouraged when they find the sales targets out of reach. Negative reinforcement type of sales incentives for promotion consultants often does not work or works for a limited period of time. The most successful sales incentives for promotion consultants are those designed on the lines of positive reinforcement.
