Create Motivating Sales Compensation Plans


sales_compensation_rsz375_optA technology company was continually hearing grumblings from the sales team, including: “I don’t get paid to sell what you are asking me to sell,” “The sales compensation plan is too confusing,” and “Our quotas are impossible to attain.” Additionally, team members were often sandbagging deals. As a result, it became difficult to attract top sales candidates.


Our consultants performed an analysis of the business objectives, pricing and profit margins on the various technologies sold by the company, and the company’s competitive positioning. A sales compensation plan was developed that included a base salary, tiered commission, and quarterly incentive bonuses. The rollout was designed to both introduce the plan to the sales team members and create enthusiasm by clearly articulating what was in it for each of them.


By redesigning the sales compensation plan and clearly communicating its elements to the sales team, sales increased within the first quarter of its implementation. The company also saw profit margins increase and was able to attract new sales professionals much easier.


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