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What is a Salesperson Hierarchy?

If you choose to compensate multiple salespeople for the same commission transaction, you use a salesperson hierarchy to specify the relationships among the credit receivers in your sales force.

For example, as shown in Figure 5 - 2, Global Computers territory sales managers receive sales credit for their subordinates' transactions, while territory sales consultants also receive credit for performing consulting work that might be necessary to close business.

As shown in Figure 5 - 2, you can allocate sales credit for a commission transaction:

We call this type of credit allocation a rollup, because it rolls credit up within the sales organization.

We call this type of credit allocation a roll across, because it rolls credit across within the organization.

How Does a Salesperson Hierarchy Work? explains how to implement both types of sales credit distribution. You include in the hierarchy only those salespeople whose sales credit rolls up or across to other salespeople; thus, the hierarchy might not necessarily reflect the true organizational structure of your sales force.


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