How Sales Compensation Works

An Introduction

Ever wonder how sales compensation works? What makes a sales compensation plan effective? The strategic objective is simple: Pay sellers for sales results. Yet, most incentive plans seem overly complex and confusing. Why is that? Additionally, each job seems to have its own unique design. Why is that? Fortunately, while most sales compensation plans seem unique and complex, they share easy-to-understand best design practices. Once you understand these common principles, it’s easy to understand how best-in-class plans function.

In this introductory session on sales compensation, you will learn the following:

• How strategy drives segmentation and job design
• Why sales jobs are the gateway to sales compensation design
• How to apply sales compensation principles
• What are sales compensation philosophies, principles and terminology
• How to construct payout formulas
• Where to find pay data and automation services

Learn more about Alexander Group’s Sales Compensation practice or contact us for additional questions.