SOLUTIONS | BUDGET RISK ANALYSIS

Budget Risk to Ensure Fiscal Responsibility

A Budget Risk analysis estimates the projected cost of a sales compensation plan before implementation, permitting one to adjust the plan and payouts to align with corporate objectives and financial expectations.

BUDGET RISK MODELING Budget Risk Analysis 80% 85% 90% 95% 100% 105% 110% 115% 120% 125% 0% 20% 40% 60% 80% 100% 120% 140% NATIONAL ATTAINMENT % OF BUDGET RISK COST

Benefits of Budget Risk Analysis

By conducting Budget Risk simulations at different levels of National Sales Attainment for the Sales Compensation Plan, The Marketing Advantage:

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Permits Adjustments Prior to Implementation

Budget Risk analysis allows plan modifications to be made before implementation.

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Ensures Fiscal Responsibility

Allows plan costs to remain aligned with corporate financial guidelines.

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Reinforces Motivation

Helps prevent payout outcomes that may become demotivating to sales professionals.

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