Is Your Sales Compensation Program Effective? Depends on Your Definition!

Posted by Steve Marley on Thu, Dec 19, 2013

When meeting new fellow sales compensation practitioners and clients, one of the first things I do is ensure we are all speaking the same language. That is, that we’re using the same words to describe the same things. One of the most common set of words to clarify is “quotas,” “goals” and “objectives.” In some companies, an objective is the salesperson’s individual quota, while in other companies an objective is used to describe something more akin to an MBO. Fortunately, these three terms can be reasonably easily interchanged with minimal confusion.

However, in preparation for 2014, I was working with a new client and asking some questions about what they would like to accomplish with their sales comp program. One of the sales leaders said, “Our plan needs to be more effective!”

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