Exploring the Spectrum of Sales Compensation Strategies

Sales compensation strategies can be broadly classified into two categories - paying for inputs into the selling process or paying for outputs/performance. While conventional wisdom dictates paying for results and managing activities, in certain situations, paying for inputs can be more effective, especially in long-term, complex deals. By incorporating customer-recognized milestones along the sales process, one can motivate salespeople to focus on activities that lead to a better end result. It's essential to break traditional rules and guidelines in sales compensation, adapting to the changing world and markets to achieve optimal outcomes.