Incentive Compensation Incentive compensation is not just a way to reward the sales force - it is a way to communicate and implement your strategies. By tailoring the incentive plan, you can steer your sales team to achieve specific goals, and exert a profound impact on your organization. The most common way to motivate and reward salespeople for closing big deals or meeting goals is via commissions and Bonus.The compensation program should be easy to understand and implement. Performance measures should be as objective as possible, and formulas to calculate commission or bonuses should be based on concrete, determinable numbers.
The way salespeople conduct themselves is often a reflection of the company's sales compensation program; and how well the company does is often a reflection of the effectiveness of its commission program.