Best Practices for Compensating Sales and Marketing People

You can’t have a business without making at least one sale. Making sure your salesforce is appropriately incentivized to grow your business and land the right customers is crucial. So, what are the best practices for compensating sales and marketing people?

Best Practices for Compensating Sales and Marketing People


“Compensating sales and marketing employees is a critical, and complicated, issue for many companies. Sales incentives are very common today, and many companies experience mixed success with these programs. Incentives work best when they are integrated into well-established performance management processes. [Furthermore,] these plans require careful design, excellent administration, and constant communication.

1. Understand Your Customer and Sales Model

It is important to develop incentives that support your sales models. Do you rely on deep, long-term relationships? Or does your company sell products to a mass or retail market? Each model requires different features, and your incentive plan should reinforce the primary sales model.

2. Determine Program Objectives

What are the two or three things that you really want to accomplish with sales incentives? Or are you trying to increase market-share? Revenues? Asset growth? These questions are critical, as they become the foundation and guideposts for the program.”

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