Compensation, Expenses and Quotas

Go to Course: https://www.coursera.org/learn/compensation-expenses-quotas

Introduction

### Course Review: Compensation, Expenses and Quotas **Platform:** Coursera **Specialization:** Sales Operations/Management Specialization **Course Overview:** "Compensation, Expenses and Quotas" is a vital third segment of the Sales Operations/Management Specialization offered on Coursera. This course delves into the financial intricacies of managing a sales force, a topic that is crucial for aspiring sales managers and business leaders. Throughout the course, students will explore sales force compensation strategies, expense management plans, and the use of quotas to drive performance metrics to achieve goals. #### Detailed Syllabus Breakdown **1. Compensation Overview** The first module introduces students to the foundations of sales force compensation. Here, participants will explore the goals of a compensation plan, ensuring it aligns with both managerial and salespeople perspectives. The course outlines the essential steps in developing a compensation plan, discussing how managers determine compensation levels. It offers an extensive examination of various compensation methods, weighing their pros and cons, alongside a discussion on indirect monetary compensation. This segment is invaluable for understanding how a well-structured compensation plan can motivate and enhance the productivity of a sales team. **2. Methods of Compensation** Moving into the second week, the course shifts its focus towards the intersection of expenses and compensation. Students will learn about the objectives of a sales expense plan, while navigating complexities such as IRS rules related to expense management. The importance of having a well-defined expense reimbursement policy is highlighted, emphasizing how such a policy aids in cultivating customer relationships—a key factor for sales success. **3. Managing Sales Expenses** In this module, participants will dissect methods for managing sales expenses effectively. The course delves into various expense control strategies employed by sales managers and discusses the implications of each. A unique angle on transportation costs is presented, particularly evaluating the provision of company cars versus personal vehicle use by salespeople. This section equips students with practical strategies for optimizing expense management within their sales teams, ensuring efficient cost control practices are in place. **4. Sales Expense Control** The final module centers on sales quotas, further dissecting their role in measuring sales performance. Participants will define sales quotas and explore the purpose behind their establishment, assessing different methodologies in quota setting. This analysis includes evaluating territory potential, historical sales data, and soliciting insights from salespeople themselves. Understanding how to set practical and achievable quotas is crucial for any sales manager aiming for heightened team performance. ### Overall Assessment The "Compensation, Expenses and Quotas" course stands out for its comprehensive and structured approach to teaching critical financial aspects of sales force management. Each module is rich with insightful content and real-world applicability, making it ideal for professionals looking to refine their skills in sales management. **Who Should Take This Course?** This course is highly recommended for current and aspiring sales managers, business leaders, and HR professionals who manage sales teams. Additionally, sales professionals seeking to understand the underlying mechanics of compensation and expense management will gain significant insights to enhance their career trajectories. **Recommendation** I highly recommend enrolling in the "Compensation, Expenses and Quotas" course. It not only provides essential knowledge but also equips students with practical tools and approaches that can have an immediate positive impact on their sales management practices. The balance of theoretical understanding and practical application makes this course a vital asset in anyone's professional development within the domain of sales operations.

Syllabus

Compensation Overview

This module focuses on sales force compensation. In this segment, we will identify the goals of a sales force compensation plan. We will compare the different viewpoints that managers and salespeople have towards compensation. We will discuss the various steps in developing a compensation plan and identify how managers determine overall levels of compensation for their sales force. We will describe the basic methods used today in compensating the sales force and discuss the pros and cons of each. Finally, we will discuss indirect monetary compensation and its role in sales force compensation.

This week we will discuss the role of expenses in sales force compensation. We will describe the goals of a sales expense plan and the various issues relating to sales force expense management such as IRS rules and regulations. Finally we will provide a discussion on the importance of providing well defined policies with regard to expense reimbursement. A well-defined sales force expense policy should be used as a tool to aid sales in their efforts to develop and grow customer relationships.

This week we will focus on Expense Control. We will discuss alternative methods available to sales managers in controlling sales force expenses. We will discuss the pros and cons of each method. Next we will discuss the use of automobiles as a transportation expense used by the salesforce to travel to their customers. We will evaluate the option of providing a company car for each salesperson to use in their daily contact with customers. If the firm chooses to provide a company car, which alternative is best for the firm: lease or purchase? Finally, we will look at sales transportation costs using the salesperson’s personal vehicle and what type of reimbursement options may be used with this approach.

This week our discussion will focus on Sales Quotas. We will define what we term a “sales Quota” and discuss the purpose of sales quotas in measuring sales performance. We will discuss various options in setting sales quotas and evaluate each in terms of its potential benefits and shortcomings. Finally we will assess different approaches to setting quotas such as territory potential, through the use of historical data or a by asking for the salesperson’s own insight into quota estimation.