How to Design A Sales Compensation Plan that Rewards Performance and Boosts Revenue


In my 30-plus years as a sales executive and sales leadership consultant, I’ve identified a critical error most sales organizations make: not crafting a sales compensation plan that effectively motivates and rewards performance as it drives bottom-line financial results.

One reason for this persistent problem is that most companies don’t appreciate the uniqueness of the salesperson’s role. Another reason is that most companies simply don’t know how to design an effective plan. This is often the case because the people who are creating the plan have never been paid in a similar manner. It’s hard to build what you have never experienced yourself. Let’s take a closer look: