Chapter 2. WHY SALES COMPENSATION PLANS FAIL—AND HOW YOURS CAN SUCCEED
Sales compensation plans fail for numerous reasons. Some pay too much relative to sales and gross profit results. Others pay for the wrong mix of business; for example, you might be paying a disproportionately high percentage of incentive compensation for selling existing products to current customers. And a few plans actually pay too little; the amount of incentive compensation salespeople can earn for exceptional performance does not make it financially worthwhile to work hard, so they hold back sales for a future period.
Often the real reason a plan fails is not poor plan design. Rather, it fails because it no longer directs, motivates, or rewards salespeople for behaving ...
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