The Benefits of “Sales Policies”

The word “policy” can evoke a negative reaction, yet sales polices, often tied to orders and compensation, are extremely important to a “well run”, world class sales organization.

Sales policies help to ensure that:

• Sales employees are being treated fairly and consistently.
• Sales employees are paid correctly and in accordance with compensation plans.
• Can save sales and HR leaders time. When questions or situations arise, they can refer to the sales policies to help make swift decisions instead of handling time consuming “one offs”.
• A company’s assets are protected by helping prevent or eliminate “cheating” and manipulation of sales and sales data. And help to eliminate “overpayment” of sales incentives.

Ultimately sales policies, when consistently enforced, can also improve employee morale. Sales Reps and Sales Managers feel better when they know everyone is held to the same standard and has the same ability to make money and meet or surpass quota.

Common Sales Policy Types
Your Sales Policy Manual doesn’t have to be hundreds of pages long but should include policies tied to these areas: 1) Sales Credit Toward Achievement of Quota: When, What, How Often, Sharing of credit 2) Contracts: Format, Length, Payment Terms 3) Sales Quota 4) Definition of an Order and 5) Using Your CRM System.

Every organization is unique, so the number and content of policies will differ from organization to organization.

Sales Policy Format
Your sales policies should be in writing and at minimum include: an overview of the policy, who it applies to, the purpose of the policy, the effective date, the last revision date, the implications for not following the policy and who to contact for questions.

When possible, I recommend that any policy is summarized on one page max. Any more than one page, it likely includes too many details and your readers may lose interest,

If you need help writing sales policies, here are a few helpful resources: “7 Steps to Better Written Policies and Procedures” by Steve Page or “Writing Effective Policies and Procedures: A Step-By-Step Resource for Clear Communication” by Nancy Campbell.