Commissions

Commissions and Their Effect on Sales Behavior

Sales commissions have long been a primary incentive for driving individual performance in competitive industries. As a direct reward for sales achievements, commissions motivate employees to maximize their efforts in achieving—and often exceeding—targets. However, the commission structure has also drawn concerns, with critics arguing that it can lead to aggressive, short-term-focused behaviors, undermining customer satisfaction and organizational ethics. Despite these challenges, well-designed commission plans can promote responsible and customer-centric selling

sales commissions

At Sales Resource Group, we believe that the question of when and how often to payout commission is dependent on a number of factors. The first thing to take into consideration is your sales cycle. If you have a long sales cycle and you attempt to pay out commissions too quickly, you’ll find you end up with periods when your sales reps aren’t earning, which is far from motivational. But

SALES TEAMS

Few factors are more vital than maintaining a competitive sales compensation when it comes to recruiting, hiring, and retaining the best salespeople. Here are our tips to help you make better decisions about base salary, commission, bonuses, and other vital factors which will influence how your sales team members act. Transparency First and foremost, we suggest that whenever possible, be upfront and transparent with your sales team members. Make sure