#1 Rule of Brewery Sales Compensation

There’s no better way to grow beer sales than to have a properly designed sales compensation plan.

The compensation plan should motivate your sales team and provide incentives to get the desired outcome: sales growth of your beer brands.

In the next few posts, I’ll share 3 Sales Compensation tactics, and describe how to use them so that you can build a plan that gets results.

3 Sales Compensation Tactics to Grow Revenue

  1. Use the First Rule of Compensation
  2. Ask these Key Comp Plan Questions
  3. Explain How the Comp Plan Works…then do it again

#1 Remember the First Rule of Compensation

The first rule of compensation is that people want to be paid a market rate and to be given an opportunity to make more if they go above and beyond.

Humans don’t like uncertainty. We want to know what to expect in life and in our paycheck. We want to know that we will be able to pay the bills and put away some money for the kids’ college savings and for retirement.

Your brewery sales people are humans, so pay them accordingly.

Sales people want to be paid a market rate and to be given an opportunity to make more if they go above and beyond.

How to Determine Market Rate

The market rate for a sales person in your area is easy to find. Ask your brewery brothers and sisters what they are paying. Use the compensation resources provided by the Brewer’s Association. And look outside the beer business to see what other industries are paying their sales people. This will give you a good idea of ‘market rate’.

How to Determine Pay for Going ‘Above and Beyond’ 

The market rate gives your sales person safety, security and certainty in the paycheck. Important things. Next, build in a plan to pay them to go ‘above and beyond’.

One tactic is to use your brewery sales forecast and design a bonus that gets paid when the sales person exceeds the goal. For example, if the sales forecast calls for 10% growth, pay them a percentage for growing it even more.

Another tactic is to look at the needs of your brewery and create a plan to pay for ‘above and beyond’. This might include increasing points of distribution, getting more shelf space in existing accounts, or building more store displays.

There are many, many ways to pay your sales team to go above and beyond. Start with a market rate and design the sales compensation structure to provide safety, security and certainty.

Wrap Up + Action Items

There’s no better way to grow beer sales than to have a properly designed sales compensation plan.

Use the first rule of compensation: pay a market rate and give them a chance to make more when they go above and beyond.

In the next post we’ll look at Key Questions to Ask when building your sales compensation plan.

Yours in Sales Comp Plans,

Kary