Sales Compensation

Sales compensation plans should be designed to motivate the sales organization to focus on the behaviors that produce results. Hire the most expensive people you can afford.

Are you paying your team NOT to sell. In 30 years of working with sales teams and organizations of all sizes and shapes I have seen 1,000’s of sales compensation plans. Most are horrible and pay sales teams and individuals NOT TO SELL. Sales force Compensation is not rocket surgery and should not take an accounting degree.

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Here are the five most common mistakes companies make when building their Sales Compensation plan;

When sales force compensation programs are developed with the right incentives, the right focus, the right mix of salary and commission, the A players show up, the B players step up, and the C players terminate themselves.

Factors to consider when building a Sales Compensation plan;

The overall average pay for a sales person in the U.S is over $85K. Based on your market and your location and the list above your Sales Force Compensation Plan should be exciting and motivating for each individual on the team. The days of just adding a higher percentage of commission or a higher salary, or spiffs to the sales compensation plan died several years ago. We have seen a complete shift in individual motivation. 5 years ago 78% of the sales teams we worked with were motivated externally. Which means they wanted more money. Today we see the exact number, 78% of the sales teams we work with are motivated by intrinsically. Which means more money is not the answer.

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