Five factors that may distract the design process of a sales compensation plan

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. 

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Factsheet; Consequences of an Indifferent Sales Compensation Scheme

What is worse?

A badly designed sales incentives system or an indifferent one? And how one could know that a sales compensation program doesn’t work?

The system needs to do its work; that of motivating sales people to sell more and meet the objectives of the team.

Watch out for the below problems/alerts that may occur when your sales incentives system is indifferent; that means it has no impact.