Most sales reps enjoy being able to take the deal they are working and easily calculate the commissions expected. Simple plans are better than complicated plans. The more complicated, the more confusing, the more difficult it is for the Rep to determine the commission.
When you get paid and look at the pay stub, a simple plan means you can easily verify it is paid accurately. There is satisfaction and the reward is directly connected with the behavior.
When there is a complicated plan with confusing terms, you really can’t match the payment to specific behavior. You will stop doing the math and miss the benefits of “line of sight” motivation. In fact, over time you may even stop looking at your commission statements. I have met sales people that know to the penny, how they are paid. I have also met sales people that have given up trying to understand it. Which of the 2 do you think is a more motivated sales person?
If you write compensation plans, please keep them simple.
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