Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • February 2017
  • Article
  • Top Sales Magazine

Rethinking Sales Compensation

By: Frank V. Cespedes
  • Format:Electronic
ShareBar

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

Citation

Cespedes, Frank V. "Rethinking Sales Compensation." Top Sales Magazine (February 2017).
  • Read Now

More from the Author

    • June 2025
    • Faculty Research

    TagHive: Edtech Pricing and Distributor Decisions

    By: Isamar Troncoso, Frank V. Cespedes and Stacy Straaberg
    • March–April 2025
    • European Business Review

    Getting Value from Digital Technologies

    By: Frank Cespedes and Georg Krentzel
    • March 27, 2025
    • Harvard Business Review (website)

    How One Company Used AI to Broaden Its Customer Base

    By: Sunil Gupta and Frank V. Cespedes
More from the Author
  • TagHive: Edtech Pricing and Distributor Decisions By: Isamar Troncoso, Frank V. Cespedes and Stacy Straaberg
  • Getting Value from Digital Technologies By: Frank Cespedes and Georg Krentzel
  • How One Company Used AI to Broaden Its Customer Base By: Sunil Gupta and Frank V. Cespedes
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.