5 Benefits of Applying Variable Compensation for Marketing

We have all watched as the rate of change and increased corporate transparency resulting from Web 2.0 has increased the cries from the executive suite about “doing more with less” and “delivering documentable benefits”.  Largely the focus falls on the sales teams responsible for the most visible custodianship of the revenue stream – new business, repeat, expanded, rescued, etc.

I have watched companies invest in a variety of ways to make their sales team more effective – to shorten sales cycles, increase the number of qualified leads, expand business in existing accounts and provide their Account Managers with the latest and greatest tools, tested or not, to generate growth.  What I don’t understand is why the majority of companies are not more effectively leveraging their existing investment in marketing.

Anyone who reads this blog knows I am a proponent of Agile Marketing, not simply the application of a new process or approach, but truly evolving a marketing team into an integrated, accountable and Agile-centric force in the organization.  And although I have met some executives interested in this approach, the minute I say I believe marketing should be placed on a variable compensation model…the crickets begin to chirp while the wheels start to turn. Then the questions…Why?  How?  When?  Won’t marketing balk? and others.

(more…)