A kicker in sales is a type of incentive offered to salespeople in addition to their base salary or commission. Kickers are typically used to motivate salespeople to achieve specific goals, such as increasing sales, closing more deals, or expanding into new markets.
A company might use a kicker to:
- Motivate salespeople to achieve specific goals. Kickers can be a powerful way to motivate salespeople to work harder and achieve their goals. When salespeople know that they can earn additional money for meeting certain goals, they are more likely to put in the extra effort.
- Increase sales. Kickers can also be used to increase sales. When salespeople know that they can earn additional money for closing more deals, they are more likely to focus on closing deals. This can lead to an increase in sales for the company.
- Expand into new markets. Kickers can also be used to expand into new markets. When salespeople know that they can earn additional money for closing deals in new markets, they are more likely to focus on those markets. This can help the company to expand into new areas and grow its business.
Some common examples of kickers include:
Commission bonuses. Commission bonuses are a type of kicker that is paid to salespeople based on the amount of sales they generate. For example, a salesperson might earn a 10% commission on all sales they close.
Quota bonuses. Quota bonuses are a type of kicker that is paid to salespeople when they meet or exceed a certain sales quota. For example, a salesperson might earn a $1,000 bonus if they close $100,000 in sales.
Performance bonuses. Performance bonuses are a type of kicker that is paid to salespeople based on their overall performance. For example, a salesperson might earn a $500 bonus if they are rated as “exceeds expectations” by their manager.
To tell if a kicker is successful, it is important to track its impact on sales and other key performance indicators. If the kicker is successful, it should lead to an increase in sales, revenue, and other key performance indicators.
To create a successful kicker, make sure it’s:
Aligned with the company’s goals. The kicker should be designed to motivate salespeople to achieve the company’s goals. For example, if the company wants to increase sales, the kicker should be based on sales performance.
Fair and equitable. The kicker should be fair to all salespeople and should not favor one group of salespeople over another. For example, the kicker should not be based on seniority or tenure.
Easy to understand. The kicker should be easy for salespeople to understand and should not be complicated or confusing.
Communicated clearly to salespeople. The kicker should be communicated clearly to salespeople so that they know what they need to do to earn the bonus.