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A 120-year-old well-established food and beverage company achieved impressive results by changing its sales commission structure. This change led to a 10% increase in gross profit and a cost reduction of $500,000 within their sales plan. Notably, they accomplished this while maintaining a compensation system that better reflected their business priorities.
The company previously faced challenges in designing and managing a performance-based compensation plan for its experienced sales team. To address this, they implemented a sales commission management tool. This tool not only motivated the sales force but also facilitated significant revenue growth and positive business transformation.
They began by analyzing their existing commission structure and then restructured sales goals to align with the company's short- and long-term strategic vision. In addition to this, they created and managed clear sales targets and compensation plans.
Furthermore, they equipped salespeople with tools to plan their activities, measure their performance, and effectively report their results. This thorough method for managing sales commissions not only boosted motivation but contributed to significant profit growth.
Studies by Hubspot indicate that the average sales close rate is only 29%. This statistic highlights the need for tools that can streamline the sales process. Commission management software can be a valuable asset in achieving faster sales closure. Therefore, this blog will introduce you to ten such software options to help you get started on improving your sales efficiency.
What is commission management software?
Sales commission management software is a tool that automates and simplifies the process of calculating, tracking, and paying out commissions to your sales team. This software helps businesses ensure accuracy and efficiency in their compensation plans, saving time and resources.
Research indicates that the average sales win rate is only 21%. Moreover, 43% of sales managers identify CRM systems as a critical tool for improving win rates. This highlights the importance of commission management software, which can further enhance sales effectiveness. If the right tool is integrated, it can help you in:
- Saving time and efficiency by automating complex commission calculations.
- Freeing up time for sales teams to focus on more strategic tasks.
- Reducing the risk of errors to ensure fair and transparent commission payouts for all the sales representatives.
- Real-time commission tracking to monitor the representative’s progress and earnings.
- Streamlining the entire commission management process to make it easier to track sales data, configure commission plans, and generate reports.
- Getting valuable insights into sales performance, allows businesses to make informed decisions about their compensation strategies.
While commission management software can automate your business processes and accelerate results, selecting the most suitable software requires careful consideration.
How to find the right commission management software?
Selecting the most suitable commission management software requires careful consideration of several key factors to ensure it aligns perfectly with your organization's specific needs. To find the right software that suits your requirements, you need to consider the following.
- Identify your requirements: Clearly define the functionalities you require in the software. Consider the complexity of your commission structures, the number of employees, and the desired level of reporting and analytics.
- Evaluate features: Research and compare various software options, focusing on features that address your identified needs. Look for functionalities like automated calculations, customizable plans, reporting tools, and integrations with existing systems.
- Consider user experience: Ensure the software offers a user-friendly interface that is easy for both administrators and salespeople to navigate. Intuitive design promotes faster adoption and reduces training needs.
- Budget and scalability: Software solutions vary in cost. Determine your budget and choose software that scales effectively to accommodate future growth in your team or business complexity.
- Free trials and demos: Many vendors offer free trials or demo versions. Take advantage of these opportunities to test the software's functionality and ensure it meets your expectations before making a purchase decision.
By carefully considering these factors, you can identify the software that best meets your needs.
Number | Software | Why choose it? | Pricing | Free trial |
1 | Compass | Commission plan design Reports & analytics Seamless payout Enterprise-grade security | Request a demo.
| Not available. |
2. | QCommission | API-integration Reports & analytics Robust features | $15 per month | Available. |
3 | Xactly | Automated commission Real-time data API-integration |
|
|
4 | CaptivateIQ | Realtime visibility Reports & analytics Enterprise-grade security | Request a demo. | Unavailable. |
5 | Spiff | Automation API-integration Sales team support | $75 a month | Unavailable. |
6 | Performio | Automation User-friendly interface Reporting & analytics | $50 a month | Unavailable. |
7 | Quotapath | Commission tracking Real-time data API-integration | $25 a month | Available |
8 | Varicent | Incentive management Sales planning Real-time data | CA$0.10 a month | Unavailable. |
9 | Ambition | Real-time data Integration Scalability | $6,840 a year | Available. |
10 | Everstage | No-code platform Real-time data Reporting and analytics | Request a demo. | Unavailable. |
A list of 10 commission management software
The following are the best commission management software you can opt for.
1. Compass
Compass is a comprehensive commission management software designed to help small businesses and sales teams automate their commission plans and calculations. Compass allows you to design commission plans effortlessly for any KPI, handle accelerators, tiers, and workflow triggers in simple clicks, and adjust and override incentive calculations on the go.
Key features:
- Compass automates commission calculations and disburses error-free payouts to sales team members
- It sets up audit trails, tracks adjustments, and locks historical statements to monitor for compliance
- Reps can view payouts in 82 global currencies.
- Compass offers API support
Pricing: Not available. Schedule a demo call with our specialists to learn more about it.
G2 rating: 4.7/ 5
Free trial: Not available.
2. QCommission
QCommission is flexible sales commission software that helps companies accurately and efficiently manage their sales commission programs. It is designed to assist companies of all sizes in calculating salespeople's compensation accurately, quickly, and professionally.
Key features:
- Integration with many accounting and CRM systems like QuickBooks, Salesforce.com, Microsoft Dynamics, and others to bring in sales details.
- QCommission can handle complex commission calculations with ease with features like paying commissions based on job profitability, sales revenue, gross profit, and more.
Pricing: $15 per month
G2 rating: 4.6/ 5
Free trial: Available.
3. Xactly:
Xactly is another incentive compensation management software that helps businesses streamline the process of calculating, tracking, and paying sales commissions.
Key features:
- Track complex incentive compensation challenges by delivering results that matter to everyone.
- Automate the commission calculation process
- Create and manage various commission structures tailored to their specific needs.
- Support for different commission types, tiers, and bonus incentives.
Pricing: Not available. Contact the specialists to find out about their pricing.
g2 rating: 4.2/ 5
Free trial: Unavailable.
4. Captivate IQ
CaptivateIQ is a sales commission management software that helps companies automate and optimize their commission processes. It is a flexible and agile platform that can centralize commission data from various sources into a single system of record.
Key features:
- Build, customize, and adapt complex commission plans without relying on IT or data teams.
- CaptivateIQ's SmartGrid calculation engine can process millions of commission transactions in seconds.
- Get real-time visibility into their commissions and performance.
Pricing: Unavailable. Contact CaptivateIQ's specialist to learn about it.
G2 rating: 4.6/ 5
Free trial: Unavailable.
5. Spiff
Spiff, a sales compensation platform, is designed to automate commission calculations and motivate sales teams to drive top-line growth. Spiff automates complex commission calculations, providing real-time visibility into commissions for sales reps and managers. This increased transparency helps motivate teams and ensure accurate and timely payments.
Key features:
- The platform features an intuitive user interface
- It also integrates seamlessly with current systems, such as CRM, ERP, and payroll, to create a single source of truth for all commission needs.
- The platform provides tools like commission estimators and tracing functionality, which help sales reps understand their potential earnings and resolve disputes efficiently.
Pricing: $75.00/ a month
G2 rating: 4.7/ 5
Free trial: Unavailable.
6. Performio
Performio is an enterprise-grade incentive compensation management software that helps companies easily and accurately calculate sales commissions, motivate their sales teams, and gain insights from data to support evidence-based decision-making.
Key features:
- Performio automates the complex process of calculating sales commissions
- Easily integrate with a company's existing CRM, ERP, and HRIS systems to pull in all the necessary data for commission calculations.
- A user-friendly portal to view their commission results, performance metrics, leaderboards, and commission estimates.
Pricing: $50.00 a month
G2 rating: 4.3/ 5
Free trial: Unavailable.
7. Quotapath
QuotaPath is a sales commission management software that easily streamlines commission tracking and calculation to maintain transparency and trust.
Key features:
- Automates commission calculations and payments
- Integrates with CRM, ERP, and accounting systems to pull in deal and payment data in real-time
- Allows admins to easily adjust compensation plans as the business evolves
- Gives sales reps full visibility into their commission earnings and calculations
Pricing: $25 a month
G2 review: 4.7/ 5
Free trial: Available.
8. Varicent
Varicent is a comprehensive commission management software designed to streamline and optimize the sales and revenue performance of businesses. It offers a suite of solutions that support a company’s entire revenue journey, from results-driven planning and predictability to growth.
Key features:
- Varicent helps create incentive strategies
- Set smarter goals, design territories, and align quotas to revenue and growth targets,
- Use AI to provide revenue insights
- Customize features such as Workflow Manager and Scheduler, which use real-time data and analytics to enhance efficiency and accuracy.
Pricing: CA$0.10 a month
G2 rating: 4.5/ 5
Free trial: Unavailable.
9. Ambition
Ambition is a sales performance management platform that helps sales managers track, motivate, and maximize their sales teams' performance. It provides tools for sales coaching, goal setting, gamification, and analytics to drive sales success.
Key features:
- Ambition's real-time reporting allows salespeople to see their commission earnings and progress in real-time.
- Get comprehensive visibility into individual and team-level commission metrics and sales data.
- Set up and adjust commission structures and targets to incentivize desired sales behaviors and product focus.
Pricing: $6,840 a year
G2 rating: 4.6/ 5
Free trial: Available.
10. Everstage
Everstage is a modern, no-code platform that automates commissions and motivates sales teams by providing real-time visibility and insights into their commissions. Everstage allows companies to design their incentive programs to drive strong business outcomes by building, modeling, and customizing commission plans to suit their evolving goals.
Key feature:
- Handle the entire commission processing workflow, from automating approval processes and contract management to validating and locking payments, to ensure timely and accurate payouts.
- Integrate with your company's existing tech stack to collect data from multiple systems.
- Set up workflows, and facilitate communication with sales reps, providing them visibility into their earnings and advanced gamification features to stay motivated.
Pricing: Unavailable. Contact Everstage's specialist to learn about it.
G2 rating: 4.8/ 5
Free trial: Unavailable.
Conclusion
Even minor errors in commission calculations can lead to wasted time for sales representatives. However, reliable commission management software offers a solution. By automating complex calculations, this software eliminates errors and frees up valuable time.
This allows sales teams to focus their energy on what truly matters: making sales. Our pick is Compass. Whether it is to drive sales behaviors with gamification focused on challenging goals and meaningful rewards, or to get visibility into the sales pipeline, Compass should be your go-to. With Compass, you get:
- Visibility into performance and payouts in one place.
- The knowledge on commission accrued, predictions, and more.
- Error-free statements at a granular level, even with frequent changes.
Book a demo call with our specialists to learn how our commission management software can help you streamline sales and scale up.
