Why You Need Incentives for Salespeople

Posted by Mike Martin on Mon, Aug 24, 2015

Leaving a sales compensation design meeting the other day, I ran into an old friend. We took a few moments to catch up and the topic of my meeting arose. We were planning for a market event, I told her, and discussing how to adjust the compensation plan. Her reaction surprised me: “I think we should get rid of the bonus program and pay 100% on salary. It would be simpler to understand, and the team could focus on the national forecast.” Disagreeing immediately, I shared a few counterpoints that showed the value of having a sales compensation plan. I assume readers of this blog also receive this opinion occasionally, so I wanted to share my response.

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