Chapter 17

Sales Compensation Design

To ensure sales compensation program alignment with fiscal objectives, most sales departments reexamine a pay program for sales representatives prior to the start of the fiscal year. Allocate sufficient time for any redesign of the sales compensation program. Recognize that sales compensation redesign is an iterative process involving many stakeholders. For large sales organizations, this process could take up to four to five months. Smaller sales organizations, with 10 to 50 sales representatives and three or fewer sales jobs should start their redesign efforts at least two months in advance of the implementation date. Sales organizations with fewer than 10 sales personnel should give themselves at least ...

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