Slashdot Mirror
Ask Slashdot: Compensating Technical People For Contributing to Sales?
cloud-yay writes "I work for an IT consulting firm and recently I've been tasked with heading up our engineering consulting team — which without the fancy corporate speak means that we're trying to empower our engineering team to think a little like sales people instead of being purely service orientated. To clarify, our technical people are viewed by our customers as trusted advisors and when they see a opportunity for a complementary sale/network refresh/project they often involve our sales team, however when the customer sees the sales people, they always clam up because they're 'sales people' and customers think they are just interested in alleviating them of their money! I'm interested in what the Slashdot community thinks of how we should remunerate engineering teams for this 'sales' work (which would cost us commission to sales people anyway) but in a way that doesn't foster any animosity between sales and tech staff because in the end sales people live and die on commission. Has anyone worked in this environment anywhere and what works/doesn't work in your experience?"
In an attempt to actually answer the extremely good question as opposed to some of the perfectly good personal opinions: As some of the comments have alluded to you are referring to Pre-sales Engineers who are this lovely breed of technically savvy, personable (mostly) and engaging characters who can articulate a technical message, marry it to a business requirement/message and do it convincingly. I have been working in this capacity for 6+ years now and have been through many iterations of compensation, some of which were better than others. They were: 1. Per-sale based compensation - not so good as you're eating into the sales person's comp, and they don't like it. It also incentivises you to act more and more like a sales person. Not so good either. 2. Qualified pre-sales visits compensation - generally "how many pre-sales calls did you make". The goal is to measure the ability to generate new business. Not so good, as it's very difficult to quantify and track, and the general pattern of behaviour is to just have stacks of meetings without providing any quality. 3. Quarterly/Annual Revenue based - this has been the most successful in my experience. Success is measured on overall revenue generation of the sales organization (of which this kind of person is a part of) rather than individual sales based commission. Commission is generally a fixed amount per-quarter based on attaining revenue figures or % growth thereof over previous years/periods. This is good as it tends to remove the person a step or two back from chasing individual sales, and then bickering over the commission for each one. The fixed comission amount (say 15% of gross annually or something) coupled with the quarterly revenue targets creates a more team based focus for everyone to assist in the success of the venture. As for the trusted advisor vs. sales debate - the sad truth is that no matter who you are, if you're asked to sell a single product/suite (instead of solutions) you're going to lose a little bit of your trusted advisor status as you're only pushing that single product rather than considering the larger picture/industry solutions. I hope this helps, PM me if you'd like to discuss further as I have had exposure to a fair bit of this type of situation and may (or may not!) shed some light to help you come up with something that works for your company.
It's not about the % - the idea is ass backwards!
Instead of turning your highly skilled techs into sales people spend the money training your sales people to understand the tech. They don't need to understand the minutia but they should understand it well enough to be able to converse with a tech. Rather than having them hand off a client from one person to the next have your sale's guy be the primary and only contact point. They should never need to consult with the technicians as to how/whether something can be done rather only be able to understand and communicate exactly what the client needs.
Our company uses an internal billing mechanism. Each sales person is allotted (x) hours of engineering time a month. Engineers are expected to perform (y) hours of consults with sales as part of their normal job (x and y are different because we have more sales people than engineers). Anything above (y) is considered bonus pay for the engineer and he earns extra pay at a relatively high hourly rate. The bonus pay comes directly from the sales person's commission. All engineering consults must be scheduled in advance through the project manager, to keep sales from killing our internal development timelines.
It works for us. Engineers get a chance to see the sales process, see what customers are doing with the product or what problem they want the product to solve, and a chance to earn extra pay. Engineers that have good social skills get requested by sales more often than others. The project manager is available to control the impact on our development. Sales people see the cost of having engineers on the call and thus are encouraged to keep it to a minimum or learn the technical details themselves.