Sales Compensation as a Strategic Business Tool 3774Sales Compensation as a Strategic Business Tool 3774

Bob Conlin

March 1, 2005

1 Min Read
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Originally Published MX March/April 2005

ADVERTISING, DISTRIBUTION, & SALES

An automated sales performance management system that includes compensation management software can motivate reps and boost revenues and profitability.

Bob Conlin

Medtech industry sales executives would probably generally agree that sales compensation should be designed to be the dangled carrot that will most effectively drive company sales performance and, ultimately, revenue production. Sales representatives have always been willing to accept relatively modest salaries in hopes of having the reward of significant additional income that comes when they meet or exceed their sales targets.

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But many sales executives would have to admit that their own sales compensation programs are in fact more tactical than strategic with respect to sales performance. For most companies, sales compensation is little more than a back-office administrative task that at best calculates commissions accurately. And, at worst, the form it takes may promote behaviors that have a depressing effect on sales performance.

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