Software Executive Magazine

OCTOBER/NOVEMBER 2017

Software Executive magazine helps software executives grow their businesses by showcasing the business best practices of our readers, executives from established and innovative software companies.

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mance of the sales and support team, and passes out awards for the top three sales reps. "You have to cel- ebrate success and hold people accountable for each sale," he says. "That's the fine balance. If you have one or the other, it doesn't work. You could have a laugh, walk around and be everyone's friend, but then you're not going to grow 10 percent a month." Celebrating success means weekly incentives, month- ly nights out with the entire team, and flat screen TVs that display sales rankings and play a rep's choice of music video when a sale comes in. If you scroll through Duncan's LinkedIn posts in a given month, you'll likely see Ping-Pong tables, a few dogs roaming the office, or a putting contest. "There always has to be excitement and a buzz. When you walk into our sales floor, it's buzzing. It's not quiet. There's something going on," says Dun- can. He's debating whether or not to offer an incentive whereby reps can throw a pie at his face if they hit their monthly targets. Generating that buzz can be accomplished many ways, and if an incentive doesn't hit home, it's easy to try something else. Learning the right compensation models for sales reps is usually a lot more complex, and it's much harder to adjust. "We have the structure to keep reps that want to earn $150,000 per year, all the way down to an average rep who is happy earning $45,000 per year," he says. "We had to tweak the com- mission structure in the U.S., because it was harder to win business. We made it a bit easier, a bit lower, but we haven't really altered the structure from day one." Duncan warns against starting reps at different base salaries – it just creates dissention among the team. All reps start with a base salary equivalent to the av- erage market rate in Orlando (which, remember, is much more affordable than markets like Boston or San Francisco). Epos offers reps two ways to increase their earning potential. Commission tiers can increase from 1.5 to 4.5 percent, and every $10,000 in monthly sales releases a different percentage. Reps can also increase rep. On Monday, each rep reviews last week's KPIs. On Tuesday, each rep does a pipeline review, and manag- ers make sure notes and next steps on opportunities are updated in Salesforce. From Wednesday through Friday, reps can expect about two total hours of indi- vidual coaching. This might mean reviewing a call and scheduling a training session to improve specifics from that call. The emphasis on consistency for reps is possi- ble because the entire sales team is in-house. But even sales teams without the luxury of an inside call center environment can put structures in place to make sure reps are being held accountable. Looking at this weekly structure could give the im- pression that Epos has a very rigid, non-personal sales environment. That couldn't be farther from the truth (re- member those 600 push-ups Duncan cranked out as an incentive for his team?). Each sales rep has his or her own PDP, a personal development plan. During these one-on- one meetings, "It's not just, 'Let's go through some num- bers and hopefully you'll do better this week.' Instead, we say, 'Let's reverse-engineer your PDP, using activity KPIs, and make sure you're on track for your personal goals as well,'" he says. This could mean reaching the next com- pensation bracket, buying a house, or moving into man- agement. Conversations about PDPs take place between managers and reps at least once per month, and manag- ers are expected to understand a rep's immediate six- and 12-month goals. Epos knows many of its millennial reps care about more than money, and these PDPs help its young sales force stay engaged and motivated. step 4: incentivizing & compensating Duncan starts every month like it's a company kickoff event. He reads the Epos mission statement, reviews strategy and financial statements, recaps the perfor- "None of my reps here are veterans. The best reps here have one year of sales experience. They come in with a blank slate, and we give them good training and a lot of coaching." D A V I D D U N C A N V P O F S A L E S & O P E R A T I O N S , E P O S N O W 17 SOFTWAREEXECUTIVEMAG.COM OCTOBER/NOVEMBER 2017

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