A sales compensation program depends a lot on its terms and conditions. Its effectiveness depends on how one designs it. There is a specific way and certain guideline how to tackle all the different areas of the program. Some indicative examples are: One needs to decide which sales roles are eligible to be part of the program or find how much in cash that role shall be getting for doing the job, the total cash compensation split between a fixed and a variable part.
All these steps need a decision making process and if one doesn’t think this through, the program might be in jeopardy.Read more