Category Archives: Sales Compensation Insights

Temporary guaranteed compensation is a topic that often comes up in our work. It sometimes scares employers who are accustomed to paying sales people based on performance. So should you include guaranteed compensation in your offer to a prospective sales hire?  The answer depends on several factors: If a prospective candidate is selling at quota for another employer, it likely took

The answer depends on several factors, some of which can be hard to determine. Consider this: High turnover among sales staff may appear on the surface to be a bad thing. But if the skills of entry-level sales reps are adequate for the business you’re in, turnover may simply signal that your sales staff have

There are many different ways to structure and layer sales compensation and commission plans and most are based on revenue performance, but in some sectors compensating based on profit is popular and there are situations where it may make sense for your company as well. Compensating on Revenues The most common form of sales compensation,

Several studies have shown that high-achieving salespeople are motivated by financial rewards (Harvard Business Review, PsyMetrics, SalesDrive, and others). That’s not to say that all salespeople are primarily motivated by money or that money is the only thing that motivates them, but achieving high income is a big factor in motivating behaviour for most salespeople

Removed from the sales effort in the trenches, the CFO is not always in a great position to understand the impact of the sales compensation plan on the behavior of the sales force. Since it is the CFO’s role to help the company to be successful from a business and financial perspective, it follows that