“Shaun, I just got my 2009 commission plan and it stinks. If I sell the same amount as last year, I will literally make a 40% less. For round numbers my 2008 comp was a 1/3 base, 1/3 commissions, and 1/3 bonus. My base stays the same but the commissions are cut in half and my quota was raised 30% to get my bonuses, which makes it harder to make my quarterly and annual bonuses.
Last year, I was 15% over quota last year and for me to make the same amount of money, I will need to be around 200% of quota and in this economy there is no way I can sell that much. As a long time reader, I know you like background, I work at a fortune 1000 company and I have been with them for 8 years. My question is how do you look for a new job in this economy?“ Phil Hellmuth
Phil, thanks for your question and good time of year to respond, with most companies having annual commission plans starting in January. My response has two parts: staying with your current company and looking for another job.
Staying with your current company. There is a little vagueness in your question in regards to your new plan, so I recommend you put together an excel spreadsheet with the comparison data on your 2008 and 2009 comp plans to know the exact differences, then I would plug in our 2008 numbers into both spreadsheets to see the differences. You may find there is difference between reality and perception and the new plan isn’t as bad. Assuming you are correct and the big paycut is for all sales reps, do you think other reps will leave? If you stick it out for the next six to twelve month, do you believe you will have the opportunity to expand your territory? Or, do you have opportunity to transfer internally?
You can meet with your boss to discuss you concerns about the new plan. I would be cautious on being too aggressive. Being a Fortune 1000 company, I doubt your boss was part of the decision making process or can change your plan. In this economy, companies are reducing expenses, and I would bet the executive management had a meeting on reducing the size of the salesforce or reducing the plan, and decided to reduce the plan.
Before moving to looking for another job, I would look at your personal financial situation. Can you reduce your personal expenses? Add additional debt for the next 12 to 36 months, as the country works our way out of this recession? The reason I asked these question is that there are not a lot jobs out there and I would be cautious on giving up your 8 years with your company to be the new sales rep. If your new company runs into problems or you don’t get some quick sales, you could be laid-off or fired, which is worse than a paycut in the current economy.
Looking for another job. Below is how I search for jobs:
Personal Networks / Referrals: I start with my professional network. I reach to out my contacts to let them know I am looking and to determine which companies are hiring (including their company) and get their feedback on industry (which companies are growing and who is struggling). Then I move to move to my extended network on http://www.linkedin.com/. If you are not on the social networks like linkedin and facebook, I recommend you create a profile and start reaching out to your contacts and who you have worked with at previous jobs.
Recruiters: I personally like working with recruiters, because their sales profession is filling jobs. In addition to helping you find a job, typically at no cost to you, they will give also give you a good update on what is going on in the industry. Be aware most recruiters will talk about jobs they have to fill versus finding companies for you. Because of this I recommend working with multiple recruiters.
On-Line Sites: Take advantage of the thousands of sales jobs posted on the web. I use: http://www.monster.com/; http://www.theladders.com/; http://www.careerbuilder.com/; and local newspaper’s websites (http://www.ajc.com/; http://www.boston.com/; http://www.latimes.com/; etc.). Also, create auto searches and profiles on the popular jobsites to get updates.Quantity and Quality:
It takes a lot of hours to find a new job. I recommend you find a balance between quality and quantity with a focus on quantity. A good problem to have is multiple job offers.
Also, make sure you continue to sell for your current company including long term prospecting. If you stop prospecting and you stay with your current company you will feel the pain months from now and your sales will be effected.
Phil, 'Good Deciding and Exceeding your new Quota'. Reader Feedback, please click the comments below to give ‘Phil' additional recommendations and I want your feedback on my response. Shaun Priest aka CloserQ
Last year, I was 15% over quota last year and for me to make the same amount of money, I will need to be around 200% of quota and in this economy there is no way I can sell that much. As a long time reader, I know you like background, I work at a fortune 1000 company and I have been with them for 8 years. My question is how do you look for a new job in this economy?“ Phil Hellmuth
Phil, thanks for your question and good time of year to respond, with most companies having annual commission plans starting in January. My response has two parts: staying with your current company and looking for another job.
Staying with your current company. There is a little vagueness in your question in regards to your new plan, so I recommend you put together an excel spreadsheet with the comparison data on your 2008 and 2009 comp plans to know the exact differences, then I would plug in our 2008 numbers into both spreadsheets to see the differences. You may find there is difference between reality and perception and the new plan isn’t as bad. Assuming you are correct and the big paycut is for all sales reps, do you think other reps will leave? If you stick it out for the next six to twelve month, do you believe you will have the opportunity to expand your territory? Or, do you have opportunity to transfer internally?
You can meet with your boss to discuss you concerns about the new plan. I would be cautious on being too aggressive. Being a Fortune 1000 company, I doubt your boss was part of the decision making process or can change your plan. In this economy, companies are reducing expenses, and I would bet the executive management had a meeting on reducing the size of the salesforce or reducing the plan, and decided to reduce the plan.
Before moving to looking for another job, I would look at your personal financial situation. Can you reduce your personal expenses? Add additional debt for the next 12 to 36 months, as the country works our way out of this recession? The reason I asked these question is that there are not a lot jobs out there and I would be cautious on giving up your 8 years with your company to be the new sales rep. If your new company runs into problems or you don’t get some quick sales, you could be laid-off or fired, which is worse than a paycut in the current economy.
Looking for another job. Below is how I search for jobs:
Personal Networks / Referrals: I start with my professional network. I reach to out my contacts to let them know I am looking and to determine which companies are hiring (including their company) and get their feedback on industry (which companies are growing and who is struggling). Then I move to move to my extended network on http://www.linkedin.com/. If you are not on the social networks like linkedin and facebook, I recommend you create a profile and start reaching out to your contacts and who you have worked with at previous jobs.
Recruiters: I personally like working with recruiters, because their sales profession is filling jobs. In addition to helping you find a job, typically at no cost to you, they will give also give you a good update on what is going on in the industry. Be aware most recruiters will talk about jobs they have to fill versus finding companies for you. Because of this I recommend working with multiple recruiters.
On-Line Sites: Take advantage of the thousands of sales jobs posted on the web. I use: http://www.monster.com/; http://www.theladders.com/; http://www.careerbuilder.com/; and local newspaper’s websites (http://www.ajc.com/; http://www.boston.com/; http://www.latimes.com/; etc.). Also, create auto searches and profiles on the popular jobsites to get updates.Quantity and Quality:
It takes a lot of hours to find a new job. I recommend you find a balance between quality and quantity with a focus on quantity. A good problem to have is multiple job offers.
Also, make sure you continue to sell for your current company including long term prospecting. If you stop prospecting and you stay with your current company you will feel the pain months from now and your sales will be effected.
Phil, 'Good Deciding and Exceeding your new Quota'. Reader Feedback, please click the comments below to give ‘Phil' additional recommendations and I want your feedback on my response. Shaun Priest aka CloserQ
Comments
Many of my buddies in sales have been delivered comp plans similar to the guy that just responded. Seems like a trend that companies are jumping on. Maybe knowing their sales people have limited places to go?
Jim