An essential step in managing the performance of salespeople is that of establishing a sound and agreed contract between manager and the salesperson. A contract in this context is simply an agreement between the manager and the salesperson as to how best they are going to work together. It is a chance for each party to outline expectations, hopes and fears and is a superb opportunity for both the manager and salesperson to fully understand each other in terms of personality style, motivators and de-motivators. It is also an opportunity for the manager to ensure that the salesperson fully understands their role and their responsibilities as well as their sales and activity targets.

So, how does contracting work?

Contracting should start right at the beginning of a manager: salesperson relationship. The manager should meet with the salesperson and each person should have aims in respect to the meeting which are along the following lines:

For the Manager: