People that work in sales do residual calculations for a variety of reasons. There’s the thrill of the chase — of moving contacts through the sales funnel, from prospect to closed deal. Then there are the fast-paced days that are always changing and challenging agents to think on their feet.
All of these factors play into the appeal but let’s be honest, the uncapped earning potential doesn’t hurt either. When you work in sales, you control your fate. You are directly responsible for creating your success and growing it into everything it could be and more.
As a business, it falls on your shoulders to ensure that—when it comes to your salespeople—all residual calculations are reviewed and distributed in a timely manner. This is important for a couple of reasons.
For the sake of your sales staff, it’s pretty simple.
Conducting residual calculations regularly ties directly into their livelihood. They’re not putting in the hours and striving to hit quotas for that base salary. They’ve made an agreement to sell your product and/or service in exchange for the residual income potential. And it’s on your accounting team to hold up your business’ end of the bargain.
Residual calculations are also important for the sake of tracking business success. They paint a clear picture of your company’s net income relative to its minimum required return. This helps you keep tabs on the financial health of your business and make more informed decisions down the road around commissions structures and sales goals.
Measure Portfolio-Wide Metrics
Calculating residual income is no walk in the park. It can be a laborsome process for finance teams that fail to have a quality system and process in place.
IRIS CRM helps alleviate the burden of residual income reporting with an easy-to-use dashboard. Through it, teams can get a snapshot in minutes of portfolio-wide metrics such as monthly volume growth, monthly revenue growth, average profit per merchant, monthly BPS margin growth, YTD profit, and lifetime profit. Metrics can be customized and tracked as dollars, percentages, or BPS where relevant.
Measure Merchant Level Metrics
On a merchant level, IRIS CRM tracks YTD profit, as well as lifetime profit in dollars and BPS. You can easily pull the last 12 months at a glance for any given merchant or customize timeline views as you see fit.
With an understanding of the merchants most profitable to your business, you can use these data points to take action. For example, perhaps a large deal closed ends up actually costing your company over time. Knowing this kind of information gives your business the insight it needs to cut its losses and focus on the most valuable types of customers.
For sales teams, it’s easy to take these residual calculations and turn them into paychecks on a regular basis. IRIS CRM makes it possible to set up payments to agents through ACH. This helps ensure that everyone gets paid on time and is eager to sell more on behalf of your business.
Having the right system in place for residual calculations can make all the difference in driving the success of your sales team and business growth. Get started with your free demo of IRIS CRM!