Rethinking Sales Compensation

Frank V. Cespedes

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Article | Top Sales Magazine | February 2017

Rethinking Sales Compensation

by Frank V. Cespedes

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.”

Keywords: Sales; Compensation and Benefits; Motivation and Incentives;

Format: Electronic

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