Category Archives: Sales Compensation Insights

There are many different ways to structure and layer sales compensation and commission plans and most are based on revenue performance, but in some sectors compensating based on profit is popular and there are situations where it may make sense for your company as well. Compensating on Revenues The most common form of sales compensation,

Several studies have shown that high achieving sales people are motivated by financial reward (Harvard Business Review, PsyMetrics, SalesDrive, and others). That’s not to say that all sales people are primarily motivated by money or that money is the only thing that motivates them, but achieving high income is a big factor in motivating behaviour

Removed from the sales effort in the trenches, the CFO is not always in a great position to understand the impact of the sales compensation plan on the behavior of the sales force. Since it is the CFO’s role to help the company to be successful from a business and financial perspective, it follows that

Nothing in life is as much fun as having fun and that is why its always great to try and turn work into a game. Sales competitions are powerful motivators because they bring out the competitive spirit in sales people and encourage sales team members to have fun while they are working hard. Put some fun

Changes in the economy have resulted in many businesses reviewing compensation expenses.  The sales commission budget – traditionally the largest cost- is often under scrutiny. Can that expense be lowered with a new incentive calculation process? Data shows that 75% of organizations with 1,000-2,500 employees currently determine commissions using spreadsheets. This approach can lead to