When was the last time you took a hard look at your sales compensation platform?
For many companies, the answer is probably “not recently.” Like any platform, once a sales compensation platform is implemented, it can become deeply embedded in the business and changing systems can feel like a major undertaking, especially when commission calculations are complex, integrations are already established, and teams have grown accustomed to existing workflows.
However, as daunting as the task seems to experiment with changing integral systems, the benefits of doing so may far outweigh the perceived risk. At a time when nearly every company is facing ongoing budget scrutiny and financial teams are tasked with looking to “cut the fat” at every turn, it is worth exploring what other options may be out there. You may be surprised that you can find an affordable sales compensation software that meets all of your unique business requirements, without sacrificing any of the crucial features that your team has grown to value.
Look Beyond the Price Tag
Of course, when beginning your software finding journey, the first place you will likely start is by cruising pricing pages to see what other technology options fit your budget. However, finding a more affordable sales compensation platform doesn’t necessarily mean choosing the cheapest option.
The real goal is to find a solution that provides the capabilities your organization actually needs without paying for unnecessary features, excessive complexity, services you rarely use, or exorbitant implementation fees.
When evaluating alternatives, consider the total cost of ownership, including:
- Subscription or licensing fees
- Implementation costs
- Integration fees
- Ongoing maintenance
- Support costs
- Internal time required to manage the platform
- Time spent correcting errors or manually completing processes the software doesn’t automate
A platform with a lower subscription price isn’t necessarily more affordable if it requires extensive implementation or leaves your team doing significant work manually.
Identify the Features You Actually Use
One of the easiest ways to uncover potential savings is to separate the features you need from the features you have. Many sales compensation platforms are designed for organizations with highly sophisticated compensation programs and that can mean including every possible feature under the sun. That can be valuable, but it can also mean paying for functionality that your team doesn’t actually use.
Before evaluating alternatives, make a list of your must-have capabilities.
For example:
- Complex compensation rules (splits, tiers, chargebacks, recurring commissions, overrides, draws, etc.)
- Data management tools
- Reporting, dashboards, and analytics
- Integrations with your existing systems
- Automated audit trails and calculation transparency
- Role-based online portal for reps and managers
This distinction can make it much easier to compare platforms objectively. Instead of asking, “Which platform has the most features?”, you’re asking, “Which platform gives us everything we need at a reasonable cost?”
Don’t Assume Affordable Means Basic
There is a common misconception that lower-cost software must come with fewer capabilities, but that’s not necessarily true. The sales compensation software market includes solutions built for organizations of very different sizes and needs. Some platforms are designed primarily for large enterprises with extensive implementation requirements and highly specialized functionality. Others focus on providing the core automation capabilities businesses need without the enterprise-level price tag.
A lower price doesn’t always mean fewer features. In some cases, a well-designed, efficient platform can actually deliver more functionality at a lower cost because it is built to automate and simplify the work involved in implementing and managing the software. When the software is easier to configure, maintain, and use, the provider doesn’t have to pass the same level of complexity and overhead on to the customer.
A more affordable platform should still be capable of handling the commission rules that make your process difficult in the first place. The goal isn’t to find software that does less, it’s to find software that delivers what you need without paying for unnecessary complexity.
Look Closely at the Rules Engine
When comparing sales compensation platforms, the most important feature that you should pay attention to is the rules engine. The rules engine is the automation tool behind the scenes that is responsible for processing your compensation rules. The more complex and highly developed the rules engine, the more complex compensation rules it is capable of automating.
The ability to automate a simple commission percentage is one thing. Automating a compensation plan with tiers, splits, overrides, draws, chargebacks, variable eligibility requirements, effective dates, and other complex conditions is another – and few platforms actually deliver on their promise to automate these requirements without any sort of manual adjustments.
Ask prospective vendors:
- Can the platform handle our existing commission plans?
- Can we easily configure rules without custom development?
- How does the system handle changes to commission plans?
- Can we easily audit commissions to see how they were calculated?
- What happens when multiple rules apply to the same transaction?
A platform should reduce the complexity of your compensation process, not simply move that complexity somewhere else.
Consider the Cost of Manual Work
Software costs are easy to see on a budget, but internal labor costs can be harder to quantify, and some compensation platforms may carry higher labor costs than others due to limited automation capabilities.
If your admin team spends days – or even hours – each month importing data, reconciling spreadsheets, double-checking calculations, creating reports, resolving discrepancies, or any type of manual adjustments, those hours represent a real cost to the business.
This is where automation can have an impact beyond the software subscription itself. A platform that automatically applies your commission rules, processes calculations, validates results, and generates reports can reduce the amount of time your team spends managing each commission cycle.
When evaluating a new platform, don’t just compare annual subscription costs, estimate how much time your current process requires and what that time is worth. You may find that the most significant savings aren’t coming from a lower software bill, they’re coming from eliminating unnecessary manual work that may be hidden behind a software failing to deliver on the expectations of automation.
Don’t Overlook Implementation and Switching Costs
Switching software can be expensive, but that doesn’t mean it has to be.
Ask vendors to provide a clear picture of what implementation involves before making a decision. Find out whether you’ll need extensive consulting hours, custom development, data migration, or ongoing professional services.
In addition to asking about implementation timelines, it’s also worth asking how quickly your team can become self-sufficient. Is the solution intuitive enough that your admin team can get up and running without losing valuable time trying to figure out how to use it?
A platform that requires a lengthy implementation and constant vendor assistance may not be the best fit for a company looking for a more cost-effective solution.
Look for a provider that offers straightforward configuration, training, and support so your team can take ownership of the system over time.
Compare What You’re Getting
Once you’ve identified your requirements, build a simple comparison of your current platform and potential alternatives.
Consider evaluating each option across these main areas:
- Cost – Break down the total cost:
- Subscription costs
- Implementation costs
- Integration costs
- Maintenance costs
- Features – Does the solution provide all the features that you need? Are they packaged altogether or do you have to pay extra to add-on crucial functionality?
- Automation – Are the processes fully automated or does the solution add additional work to your admin team to manage?
- Scalability – Can the system support your organization as you grow?
- Support – What kind of support can you expect? Is your team on their own? Does every simple question come with a hefty bill?
These considerations can help you determine the real value of the platform, something that you may not be able to get just from the vendor’s pricing page.
An Affordable Alternative Doesn’t Have to Mean Starting Over
For organizations considering a change, the good news is that moving to a more affordable sales compensation platform doesn’t necessarily mean compromising on functionality. Core Commissions provides the full suite of commission automation capabilities at a price that fits most company’s budgets.
Core’s rules engine can automate complex compensation calculations, including tiers, splits, overrides, draws, chargebacks, and other complex rules, while providing instant auditing that show the step-by-step behind each calculation.
Core’s platform also includes comprehensive reporting capabilities with intuitive drag and drop report and analytics designers, advanced data management tools, hierarchical account management, dispute resolution, and role-based security that allows every level of your organization access to the data they need. The cherry on top? Core’s platform is designed to be completely customizable so you can have a platform that feels like it was built just for you. These features are not add-ons, but all included in one transparent price that ensures you have full automation without paying extras for features that should come standard.
If you’re paying for more than you need, spending too much time maintaining your compensation process, or assuming that comprehensive automation has to come with an enterprise price tag, it’s worth taking another look at the market.
The Right Sales Compensation Software Should Earn Its Place
Re-evaluating your technology doesn’t have to mean replacing everything. It simply means ensuring that the tools that you are using check all the boxes for your business. It is very possible that the solution that you are currently using checked these boxes in the beginning, but maybe they no longer fit the bill.
So, ask yourself:
- Are we using what we’re paying for?
- Are we still getting enough value from our current platform?
- How much of our compensation process is actually automated?
- Could we get the same – or better – functionality from a more focused, affordable solution?
If the answers to these questions have you questioning your current platform, it may be time to explore other options. You may be surprised by how easy the transition can be and finding a platform that meets your needs while making the most of your budget can leave you even more confident in your decision to switch.
To see the full-breadth of Core’s commission automation capabilities and get a full cost assessment to determine the cost value of Core’s solution, schedule a demo to meet with one of our account executives.