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Keep Your Sales Compensation Simple (And Generous)

Hugh Morgan · December 9, 2020 ·

Keeping sales compensation simple (How the variable part is calculated) and generous will ensure that your sales team is motivated and wants to make deals happen. Ideally, a salesperson should be able to calculate her commissions in her head or on the back of an envelope; you may find that your CFO or CEO wants to put a super cool, and complicated formula in place for calculating incentive comp and you should resist this.  Nothing discourages a sales team more than a commission system that is complicated and opaque.  Or one that squeezes them.

Additional Reading

  • Sales Commission Structures: Everything You Need to Know – Xactly
  • How to Build Effective Sales Compensation Plans For Any Customer Facing Role – Sales Hacker
  • 8 Typical Sales Commission Structures to Motivate Reps (With Examples) – Spotio

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hugh@hughmorgan.net​

+1 510 282 3784

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