Compensation Management and Roles Glossary

Alignment

Alignment refers to the extent that a sales compensation program is aligned with the key business objectives of the company. It also refers to the extent that sales compensation plans for different job roles are aligned to motivate teamwork across sales roles.

Assignment

In order to ensure that a customer is not inundated with multiple reps calling from the same company, it is typical to assign prospects to a person in a sales role. Often an assignment is referred to as a "territory" and can be based on an account id, name, channel, area code, zip code, product, team, roll up, etc. Assignments are usually made at a position level so if an individual move out of the position, the assignment stays with the position and does not move with the individual

Direct Sales Position

A position that is directly responsible for closing business with the customer. This position produces orders.

Eligibility

Eligibility is the requirement that must be met in order to participant in a compensation plan.

Modeling

Modeling is used to estimate the cost of the plan or all plans under various scenarios, varying things like the number of participants, attainment, rates, etc.

Overlay position

An overlay position is not directly responsible for closing the business with the customer. Examples include a regional sales manager, system engineer, etc.

People Assignment

Assigning payees and entering their target variable compensation.

Performance Measurement

The appropriate measure to evaluate the sales results and includes expectations (goals and quotas) and the ability to track the actual accomplishment.

Revenue

Amount of money the company earns on a sale. Revenue often differs from bookings depending on GAAP (generally accepted accounting principles) compliance.

Sales Alignment

Alignment refers to the extent that a sales compensation program is aligned with the key business objectives of the company. It also refers to the extent that sales compensation plans for different job roles are aligned to motivate teamwork across sales roles.

Sales Assignment

In order to ensure that a customer is not inundated with multiple reps calling from the same company, it is typical to assign prospects to a person in a sales role. Often an assignment is referred to as a "territory" and can be based on an account id, name, channel, area code, zip code, product, team, roll up, etc. Assignments are usually made at a position level so if an individual move out of the position, the assignment stays with the position and does not move with the individual.

Sales Territory

See assignment - A territory can be account, customer, geographic, products, etc.

Territory

See assignment - A territory can be account, customer, geographic, products, etc.

TIC

Short for Target Incentive Compensation. Allows the administrator to set a target compensation for the Rep.