As many users of LaunchPad know we handle very nicely their commission plans and make the process transparent for the sales reps and accounting. However, about 15% of the plans presented to me remind me of the above scene from Good Will Hunting. It would take a full time, and typically does, math major to calculate commissions.
If you have the capital and the time to allocate to this process each month go for it, but many organizations have employees that spend overtime and weekends trying to come up with a magical number that honestly nobody can confirm is right or wrong.
At LaunchPad we like to preach the K.I.S.S methodology when coming up with your sales reps compensation plan. A commission plan should be transparent for all and most importantly MOTIVATE the sales rep. The minute they feel like they cannot determine an upcoming check or how much they are going to get paid you have lost the incentive to work for it.
So as you measure the success of your 2016 commission plans or are thinking about the plan your cooked up over the holidays while drinking a few glasses of wine, take a step back and put yourself in the shoes of the sales rep.
We find that the top sales reps in companies using LaunchPad view their commission reports on a daily basis to see what their upcoming paychecks are going to look like. In fact we tell owners to be worried about the reps that never look at these reports or question their paychecks. This to me is a sign of the rep being fat and happy. Create plans that can be managed by a system and process and holds all parties involved accountable.