1 - Digitalthink introduction. What quotas should be set for salespeople for FY1999 given that the salespeople would be new to DigitalThink and the catalog would still be acquiring critical mass? To answer this question, they believed they had to make a decision regarding what a salesperson’s quota should be once DigitalThink had a full catalog of 150 courses or more. DigitialThink management believed that, once the company was larger and had a bigger course catalog, salespeople should be responsible for about 20 active accounts? Spectrum Brands has a very extensive product portfolio consisting of consumer

2. Should they hire regional managers first or should they hire one or two more salespeople first, to save money and get more data in terms of what a salesperson could sell?
DigitalThink should hire a couple more salespeople before hiring regional managers. 3. Should the regional sales managers – whenever they were hired – have quotas in addition to their sales oversight jobs? Should Palace have a personal quota?

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The regional sales managers should have a quote as Palace should as well; however, their sales quotas should be based upon relationships… 4. What should the relationship be between the quotas for individual salespeople, the total sales force, and the annual revenue plan for the company?

Under Spectrum’s current sales force strategy, there is a separate sales force for each 5. Since the quotas they set would be related in part to the quality of the salespeople they hired, how high should they aim when doing their hiring? How much could/should they pay and what should the mix be in terms of salary, commissions, and possibly stock options? Should commissions be a flat rate or a sliding scale, increasing with the level of sales generated – and should earnings from commissions (and therefore total cash compensation) be capped?

Quotas should be based upon the territory and each territory should represent the same level of opportunity.
The total compensation plan should be comprised of a base salary plus commission. Stock options should be an incentive to attract more experienced sales people and should be offered commensurate with the experienced level.

Commissions should be a sliding scale based upon the account size as well as additional profitability incentives.
Earnings should not be capped.

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