Friday, July 17, 2009

When does a house account become a new lead?


Working in the trade publication industry targeted at the construction industry you always come across previous customers who have dealt with your company before. In some cases these companies may have advertised with your group of newspapers 2 years ago or had a previous feature done. What happens with a customer like this is they are usually forgotten and rediscovered by a new sales rep. Should these be classified as new sales? How long do they need to be neglected before they are new again?
How does your business handle these types of situations when commissions are involved and territories may overlap based on where the lead was originally generated? What if someone outside of sales asks for the business and gets it? Do you have the sales reps share the commission? Does the house step in and take 50% as a house account?
We have a great sharing policy in place for these grey areas since all sales reps are compensated with a guaranteed salary. Commission is paid for exceeding monthly targets. This sharing policy helps avoid cut throat techniques and hoarding of information which could have an adverse affect on your "Brand". If people are all working towards the goal of having a thriving business and a portion of the rewards from leads that overlap territories or house accounts is shared then everyone is happy. Giving a small percentage helps to encourage team work and avoid people feeling as if they were cut out.
What challenges has your business faced with sharing commission and tracking who owns a lead?

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