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Sales compensation plans come in all shapes and sizes.  Is one better than another?  Read on for tips in designing a compensation plan that works for your sales team.


- Ann Clifford, President

Dos & Don'ts    


"If a sales candidate has a past DUI on his background check, should you hire him?"


                       (Answer provided at the end of the newsletter.)

Sales Comp Plan: 4 Keys to Motivate your Team


Execute a well-designed sales compensation plan to establish a sales culture of high performance where individual and company goals are in alignment. Include the following key elements when designing your sales comp plan: 

  • Business sales strategy and goals. 
  • Performance measures. 
  • Payout formula. 
  • Regulations and rules.

Once your sales compensation plan is crafted; document and distribute the plan to your sales force.  Your sales manager brings value to the plan by clearly communicating the details of the plan to the sales team.  Connect the dots on how your sales team will be rewarded when company's sales strategy and goals are met.

Sell the Right Stuff


Is your sales team selling the right stuff?  If not, perhaps your sales compensation plan could use a facelift.  Only 41% of business leaders say they're satisfied with their sales compensation plans, and fewer than half say the plans do enough to encourage the right selling behavior. The best plan rewards your sales team appropriately for the results you desire. To determine if your plan is on target, ask yourself the following questions:

  • Has my company's comp plan adapted to changes in the market?
  • Am I providing higher incentives for the products and services we wish to target?
  • Will my best sales reps make the most money under the current plan?
  • Have I effectively communicated the plan to my sales team? 
Safari Interview Tip 

It is best to discuss money upfront with sales candidates.  Ask what percentage of total compensation they want their upside reward (commissions) to be.  And, ask what level of base salary do they need (not want) to cover their basic living expenses? 

Answer to Today's Dos & Don'ts  


"If a sales candidate has a past DUI on his background check, should you hire him?"



There are some factors that come into play on whether or not you should hire a sales rep with a DUI.  Consider the timeframe.  If the background report shows the DUI was over 10 years ago and no additional drinking related charges since the occurrence, then the candidate is of less concern than some who recently received a DUI.  Also, consider the sales role.  If this is an inside sale role, there should be little concern about his or her driving records.  However, in an outside sales role, a rep with a recent DUI on record may not be covered by your company's insurance policy.  

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What percent of sales reps miss their quota?


A. 43%

B. 35%

C. 50%

D. 64%


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Safari Solutions' (RPO) services help companies hire better. Acting as a corporate HR partner, we help companies make educated hiring decisions by sourcing, screening, and evaluating candidates with a high level of due diligence. Hundreds of business owners have improved hiring results using Safari Solutions' Tiger Eye Hiring™ process.