Believe it or not, many companies still use manual methods of tracking commissions for their sales reps. Spreadsheets and Excel files have been the standard for decades for commission tracking. But with much better options out there, many companies are starting to switch to automated commission tracking systems and seeing positive results.

Lets take a look at how automating your commissions process can benefit you and your sales representatives:

Automatically Tracking Sales Commissions Creates Transparency, which leads to Trust

Trust is a big deal in any sales position.

Why is this? Many times sales representatives who join your company from a previous organization left because they experienced being burned on a commission or bonus they felt they deserved. Since that’s the case, they’re already keeping an eye on your company to see if they’ll miss out on compensation they deserve again. Automating the commission tracking process helps eliminate that possibility and over time can rebuild trust.

Studies show that over 88% of spreadsheets have calculation errors. If you’re using faulty equations or your formulas accidentally get broken, any trust that was built up with your sales representatives can get broken overnight. One thing that sales representatives hate is when you mess with their money. Why would you want to even make that an option?

Showing the REpresentative their commissions in real time allows them to plan for Success

Sales Representatives can come in all different varieties. Some are highly organized and know every commission they’re supposed to be paid down to the last penny. Others act like they care less, and you wonder how they managed to make it out of bed and into work every day. Either way, you help these sellers gain efficiency and focus better on making sales when you take away the worries of how their commissions will be calculated.

Also, using an automated commission system allows you to pay commissions quickly. Doing so increases the level of motivation a sales rep will get out of their commission check.

If a manual commission tracking process slows you down from paying commissions, consider the lost momentum and performance that causes your sales staff.

Lastly, Sales Reps are most fully engaged when they fully understand and know how to maximize their compensation plan.

Automatically tracking commissions for your sales staff not only enables them to see the impacts their sales have on their paycheck quickly, it also enables Sales Managers to encourage or intervene as necessary. Conducting a one-on-one evaluation is much more effective when you can tie behaviors to results in a way that a sales rep tangibly experiences. On payday, what does a rep experience positively or negatively in sales more than their paycheck? 

Tracking Commissions Automatically Instead of Manually creates a scalable business.

If you love direct or door to door sales, chances are you’re attracted to its scalability as a business model. If you have a good product to sell, and enough potential customers to get in front of, then you are only limited by your time and the amount of sellers on your team. The sky is the limit if you can scale!

Unfortunately, that is precisely where many teams hit their ceiling. If you don’t have the right tools to scale, then growth will stagnate at a certain point, and chances are you won’t be happy with that. If you grow beyond your spreadsheet process for calculating commissions, you run into all kinds of scalability issues. 

At a certain point, studies show that your admin users will spend more time tracking down spreadsheet errors than in actually creating commission statements. If the person in your organization creating commission statements is also leading a sales team, this is a massive problem. Their potential performance ceiling is now much lower due to the increased time and frustration spent manually calculating commissions.

Even if you have someone on your team that specifically handles data, and they love doing it, that person has their limits as well. 

At Direct Sales Resources, we’ve seen many organizations plateau at 15, 30, or 50 sales representatives and fail to push beyond that because of their operational inefficiencies. If this is the case, does it make more sense to hire more people and revamp your operations staff, or invest in software that can help create operational efficiencies?

DSHero was created by salespeople, for salespeople, to simplify the back office for growing sales teams. One critical way we do this is by helping automate your commission process. 

If you’d like to learn more about all the features DSHero offers to help your sales team click the button below to schedule a demo with a friendly member of our team.

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