The Sales Compensation Diamond Part I: Framing the Plan

SalesGlobe Forum

Sales Comp Diamond

What happens when the sales leadership team takes a hard look at its sales compensation plan? Do they talk with their calculators? Is a spreadsheet the primary conversation piece? Think about what happens at meetings about sales strategy or sales roles and the question of sales compensation comes up. People start talking about whether the commission rate should be increased or decreased. Comments like, “Let’s put an accelerator in place to drive performance. Maybe we need to uncap the plan, or add a threshold for the low performers,” fly through the room.

The team has just started with the middle of the process and is on its way to a non-strategic answer. Only once they’ve aligned their Revenue Roadmap disciplines should they transition to the sales compensation design process.

Once the C-Level Goals and sales roles have been established, there are four facets in the process of evaluating and designing…

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