Sales compensation is a perennial topic at most companies. There are many different ways to pay salespeople, and money is important. Business history is full of firms that got what they paid for (e.g., reps who, responding to their volume-driven incentives, failed to execute premium-priced sales strategies) and didn’t get what they didn’t pay for (individually-focused incentives in a team selling approach).
But the compensation conversation has also generated some assumptions that, in my experience, are often false. Here are five common “truths” you should reconsider.