Principles of Sales Compensation

How to compensate different types of salespeople to satisfy different types of customers

Principles of Sales CompensationSelecting and training the best people in the world is of little value if you can’t retain them.

The Basic Principles That Shape Compensation Plans:

  • Customers need different sales approaches to match their needs.
  • The different types of salespeople who are best suited to fulfill those different customer needs have unique incentive and compensation requirements.

Unfortunately, the worth of a sales force is seldom calculated objectively. Complicating the issue further, sales force costs cannot be estimated easily. To more objectively evaluate the impact of sales on overall company viability and profitability, only four major areas need to be assessed.

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