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	<title>Comments on: Bookings vs Revenue</title>
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	<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/</link>
	<description>Selling, sales consulting, sales management,</description>
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		<title>By: RyanM</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-1988</link>
		<dc:creator>RyanM</dc:creator>
		<pubDate>Fri, 03 Jun 2011 19:33:00 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-1988</guid>
		<description>..and as a owner or stockholder I want the company to keep the money in companies pockets as long as possible generating additional revenue!</description>
		<content:encoded><![CDATA[<p>..and as a owner or stockholder I want the company to keep the money in companies pockets as long as possible generating additional revenue!</p>
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		<title>By: Keenan</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-596</link>
		<dc:creator>Keenan</dc:creator>
		<pubDate>Wed, 18 Nov 2009 19:36:47 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-596</guid>
		<description>You&#039;re right Aaron.  The comp plans definitely need to reflect the  &lt;br&gt;needs of the business.  This isn&#039;t done enough.</description>
		<content:encoded><![CDATA[<p>You&#39;re right Aaron.  The comp plans definitely need to reflect the  <br />needs of the business.  This isn&#39;t done enough.</p>
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		<title>By: AaronKlein</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-595</link>
		<dc:creator>AaronKlein</dc:creator>
		<pubDate>Wed, 18 Nov 2009 12:46:50 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-595</guid>
		<description>It is a great post.&lt;br&gt;&lt;br&gt;One other angle to throw - I skimmed the other comments but this one didn&#039;t pop out at me - is when you sell a product that offers annual vs. monthly payment plans. A third option some companies use is pay sales people based on cash.&lt;br&gt;&lt;br&gt;Get the cash up front? Pay the salespeople up front, even if you have to defer and recognize the revenue over the course of the year.&lt;br&gt;&lt;br&gt;On the other hand, if all the salesperson sells is a monthly plan to the customer, why should they get the same incentive as closing the annual plan deal? It doesn&#039;t bring in as much cash and if your goal is annual deals, then structure the comp plan accordingly.</description>
		<content:encoded><![CDATA[<p>It is a great post.</p>
<p>One other angle to throw &#8211; I skimmed the other comments but this one didn&#39;t pop out at me &#8211; is when you sell a product that offers annual vs. monthly payment plans. A third option some companies use is pay sales people based on cash.</p>
<p>Get the cash up front? Pay the salespeople up front, even if you have to defer and recognize the revenue over the course of the year.</p>
<p>On the other hand, if all the salesperson sells is a monthly plan to the customer, why should they get the same incentive as closing the annual plan deal? It doesn&#39;t bring in as much cash and if your goal is annual deals, then structure the comp plan accordingly.</p>
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		<title>By: Keenan</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-294</link>
		<dc:creator>Keenan</dc:creator>
		<pubDate>Wed, 18 Nov 2009 12:36:47 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-294</guid>
		<description>You&#039;re right Aaron.  The comp plans definitely need to reflect the  &lt;br&gt;needs of the business.  This isn&#039;t done enough.</description>
		<content:encoded><![CDATA[<p>You&#39;re right Aaron.  The comp plans definitely need to reflect the  <br />needs of the business.  This isn&#39;t done enough.</p>
]]></content:encoded>
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		<title>By: aaronklein</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-293</link>
		<dc:creator>aaronklein</dc:creator>
		<pubDate>Wed, 18 Nov 2009 05:46:50 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-293</guid>
		<description>It is a great post.&lt;br&gt;&lt;br&gt;One other angle to throw - I skimmed the other comments but this one didn&#039;t pop out at me - is when you sell a product that offers annual vs. monthly payment plans. A third option some companies use is pay sales people based on cash.&lt;br&gt;&lt;br&gt;Get the cash up front? Pay the salespeople up front, even if you have to defer and recognize the revenue over the course of the year.&lt;br&gt;&lt;br&gt;On the other hand, if all the salesperson sells is a monthly plan to the customer, why should they get the same incentive as closing the annual plan deal? It doesn&#039;t bring in as much cash and if your goal is annual deals, then structure the comp plan accordingly.</description>
		<content:encoded><![CDATA[<p>It is a great post.</p>
<p>One other angle to throw &#8211; I skimmed the other comments but this one didn&#39;t pop out at me &#8211; is when you sell a product that offers annual vs. monthly payment plans. A third option some companies use is pay sales people based on cash.</p>
<p>Get the cash up front? Pay the salespeople up front, even if you have to defer and recognize the revenue over the course of the year.</p>
<p>On the other hand, if all the salesperson sells is a monthly plan to the customer, why should they get the same incentive as closing the annual plan deal? It doesn&#39;t bring in as much cash and if your goal is annual deals, then structure the comp plan accordingly.</p>
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		<title>By: Keenan</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-291</link>
		<dc:creator>Keenan</dc:creator>
		<pubDate>Wed, 18 Nov 2009 01:18:26 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-291</guid>
		<description>It&#039;s what makes blogging so much fun.  I live for a good debate.&lt;br&gt;&lt;br&gt;Glad you liked.</description>
		<content:encoded><![CDATA[<p>It&#39;s what makes blogging so much fun.  I live for a good debate.</p>
<p>Glad you liked.</p>
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		<title>By: Keenan</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-290</link>
		<dc:creator>Keenan</dc:creator>
		<pubDate>Tue, 17 Nov 2009 17:48:20 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-290</guid>
		<description>Good summary of the complexity.</description>
		<content:encoded><![CDATA[<p>Good summary of the complexity.</p>
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		<title>By: iannarino</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-289</link>
		<dc:creator>iannarino</dc:creator>
		<pubDate>Tue, 17 Nov 2009 17:10:48 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-289</guid>
		<description>You are right; it is never a zero sum game. There may be a cost to your company to have the sales staff be responsible in some way for delivery. However, there may also be a cost to your company if the salesperson isn&#039;t responsible for delivery. But, the expectation that matters is not yours or mine--it is the customer&#039;s. Typically, the hand-holding at the beginning of a new relationship requires the skills that salespeople possess (often they are selling to both companies during this stage of the relationship, but that is another blog post). &lt;br&gt;&lt;br&gt;I don&#039;t think that anyone would disagree with keeping your reps in the field as much as is humanly possible. But, what Chally&#039;s research shows is that clients of B2B sales now expect their salesperson to actually help them achieve the result they promised. They sold it, they own it. They feel abandoned when the sales rep leaves immediately after the sales is concluded, and, a big part of their decision to choose a company is based on the salesperson&#039;s commitment to being there to hep them achieve the result promised. &lt;br&gt;&lt;br&gt;Surely there as many answers to this part of your post as there are companies. Do some companies have an operations team with the sales skills to manage a complex implementation? Sure. Do some companies need the salesperson involved in order to facilitate an implementation? Sure. Is there an ability to involve the implementation team into the sales process to make the hand off easier on the client? Sure. Does this make compensation more complicated? Absolutely!</description>
		<content:encoded><![CDATA[<p>You are right; it is never a zero sum game. There may be a cost to your company to have the sales staff be responsible in some way for delivery. However, there may also be a cost to your company if the salesperson isn&#39;t responsible for delivery. But, the expectation that matters is not yours or mine&#8211;it is the customer&#39;s. Typically, the hand-holding at the beginning of a new relationship requires the skills that salespeople possess (often they are selling to both companies during this stage of the relationship, but that is another blog post). </p>
<p>I don&#39;t think that anyone would disagree with keeping your reps in the field as much as is humanly possible. But, what Chally&#39;s research shows is that clients of B2B sales now expect their salesperson to actually help them achieve the result they promised. They sold it, they own it. They feel abandoned when the sales rep leaves immediately after the sales is concluded, and, a big part of their decision to choose a company is based on the salesperson&#39;s commitment to being there to hep them achieve the result promised. </p>
<p>Surely there as many answers to this part of your post as there are companies. Do some companies have an operations team with the sales skills to manage a complex implementation? Sure. Do some companies need the salesperson involved in order to facilitate an implementation? Sure. Is there an ability to involve the implementation team into the sales process to make the hand off easier on the client? Sure. Does this make compensation more complicated? Absolutely!</p>
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		<title>By: SkipAnderson</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-288</link>
		<dc:creator>SkipAnderson</dc:creator>
		<pubDate>Tue, 17 Nov 2009 15:50:24 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-288</guid>
		<description>As a pure question about when salespeople should be compensated, I agree they should be compensated at bookingm in part, because it&#039;s a more effective motivation for salespeople (many or most of whom are or should be money-motivated).&lt;br&gt;&lt;br&gt;The rest of the issue, to me, starts to cross the line that reflects specific duties of a specific rep in a specific company in a specific industry. My client companies are B2C (please don&#039;t make the mistake many people do and read &quot;B2C&quot; to mean &quot;simple&quot; or &quot;not complex!&quot;). &lt;br&gt;&lt;br&gt;Many B2C sales-customer relationships are single transactions rather than acting as an initial point of entry for ongoing business from the customer. If you look at sales through this lens, it suggests that some of the others&#039; comments here aren&#039;t applicable, because discussions about &quot;sales&quot; are usually viewed through the lens of B2B selling.&lt;br&gt;&lt;br&gt;Anyway, having said that, I always enjoy reading debate about age-old issues such as business development vs. account management, or sales vs. project management.&lt;br&gt;&lt;br&gt;And, I agree with Dave Brock when he says &quot;As a sales person, I want to be paid quickly, as a business manager, I want to make certain I get the revenue.&quot;&lt;br&gt;&lt;br&gt;Your post is good fodder for discussion, Jim.</description>
		<content:encoded><![CDATA[<p>As a pure question about when salespeople should be compensated, I agree they should be compensated at bookingm in part, because it&#39;s a more effective motivation for salespeople (many or most of whom are or should be money-motivated).</p>
<p>The rest of the issue, to me, starts to cross the line that reflects specific duties of a specific rep in a specific company in a specific industry. My client companies are B2C (please don&#39;t make the mistake many people do and read &#8220;B2C&#8221; to mean &#8220;simple&#8221; or &#8220;not complex!&#8221;). </p>
<p>Many B2C sales-customer relationships are single transactions rather than acting as an initial point of entry for ongoing business from the customer. If you look at sales through this lens, it suggests that some of the others&#39; comments here aren&#39;t applicable, because discussions about &#8220;sales&#8221; are usually viewed through the lens of B2B selling.</p>
<p>Anyway, having said that, I always enjoy reading debate about age-old issues such as business development vs. account management, or sales vs. project management.</p>
<p>And, I agree with Dave Brock when he says &#8220;As a sales person, I want to be paid quickly, as a business manager, I want to make certain I get the revenue.&#8221;</p>
<p>Your post is good fodder for discussion, Jim.</p>
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		<title>By: Keenan</title>
		<link>http://asalesguy.com/2009/11/16/bookings-vs-revenue/#comment-287</link>
		<dc:creator>Keenan</dc:creator>
		<pubDate>Tue, 17 Nov 2009 14:34:51 +0000</pubDate>
		<guid isPermaLink="false">http://asalesguy.com/?p=2353#comment-287</guid>
		<description>Sales person should absolutely own the account.  Don&#039;t think it&#039;s zero  &lt;br&gt;sum.  There is a cost to the company if I measure my sales people on  &lt;br&gt;delivery.&lt;br&gt;&lt;br&gt;//keenan</description>
		<content:encoded><![CDATA[<p>Sales person should absolutely own the account.  Don&#39;t think it&#39;s zero  <br />sum.  There is a cost to the company if I measure my sales people on  <br />delivery.</p>
<p>//keenan</p>
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