Minutes

The Membership Meeting was held February 23, 2011, at Legends.

President Suzanne Vendena called the meeting to order at approximately 6:15 p.m. and introduced speaker Dave Eddleman, Principal with The Alexander Group, a management consulting firm specializing in the development and implementation of sales effectiveness strategies and the design of incentive compensation plans.  The program focused on sales plan design for compensation and incentives.  The topics covered include:

- The “pay at risk” scenario for sales professionals; compensation is designed on meeting/exceeding outlined goals and the consequences of not meeting set goals

- The types of sales professionals - income producers (real estate agents, traders, independent agents) versus sales reps (account managers, territory reps, product specialists

- What drives the pay basis for the two groups of sales professionals, i.e. the income producer (him/herself) or the company (for the sales reps), who owns the account, the basis of pay (unlimited versus limited)

- Examples of various curves, both production and compensation

- Client mix (old vs. new) and the degree of influence by the client base

Metrics to determine compensation – revenue, new clients, existing contracts

- What to consider when designing sales compensation – program objective, sales strategy, sales management, sales talent and sales compensation itself

- Mistakes made in compensating sales professionals – crediting, formula, administration, policy and legal

The meeting adjourned at approximately 7:25 p.m.