Advice on commission/incentives structure


Do you have some advice on how to best structure my sales teams commission/incentives?


To be honest the correct advice and best approach for you will highly depend on the size of the company, number of reps, specific market etc. Can you provide some more info?


I think it’s very important to look at your organizational structure and decide what could constitute strong incentives e.g. depending on how independent your workforce is you can decide between group and individual rewards as well as how often they are distributed (monthly vs. quarterly). In the end, each employee is different and has an individual drive.

In my opinion, regardless of the organizational structure, the following points have to be taken into account when designing an incentive system:

  • clearly defined and communicated, realistic, measurable goals
  • consistent and continuous feedback
  • customized pay methodologies & metrics based on employees role/experience


Yes, totally agree with the post from @kendrasrad. It’s really important to set achievable goals which are yet not too easy! Also keep in mind the size of the territory and what is realistic in terms of territory size and potential.