Sales compensation
Sales compensation refers to the mechanisms through which sales resources (e.g., account executives, business development representatives, etc.) are paid. Sales compensation is a critical component of activating a go-to-market strategy and should directly connect the methods which sales representatives earn to key strategic objectives of the organization. Compensation is a motivator, and should be used to influence the behavior of sales teams on high value activities. There are a myriad of approaches to compensating a sales force, but best-in-class compensation plans always drive a high degree of correlation between the payment received and the individual’s performance.