February 2017
Article
Top Sales Magazine

Rethinking Sales Compensation

Format:Electronic

Abstract

Compensation is probably the most discussed aspect of sales and the single biggest portion of the more than $900 billion that U.S. companies alone spend annually on sales efforts. But research indicates that less than 10% of companies believe that their sales incentive plans “consistently drive selling behavior.” This article discusses three common assumptions about sales compensation that merit re-examination and skepticism: “Money Is the Only Motivator” for most sales people; “Comp Plans Must Be Simple”; and “We Pay for Results, Not Process.”