Let’s talk about sales incentives that don’t suck. If you’re still running a straight commission program or throwing random spiffs at your team, you’re leaving money on the table. I’ve seen the right incentive structure double sales team performance – and the wrong one drive top performers straight to competitors.
Here’s the hard truth: Most incentive plans fail because they’re designed for management convenience, not sales performance. Your spreadsheet might look clean, but your sales team is gaming the system, focusing on the wrong metrics, or just plain checked out.
Let’s fix that.
The Psychology of Powerful Incentives:
Immediate Gratification
Weekly/monthly payouts beat quarterly
Visual progress tracking
Real-time recognition
Instant reward confirmation
Clear Achievement Paths
Transparent goals
Achievable milestones
Multiple winning opportunities
Progressive rewards
Competition AND Collaboration
Team and individual rewards
Peer recognition systems
Collaborative goals
Shared success bonuses
We recently helped a software company transform their sales by replacing their traditional commission structure with a multi-level achievement system. Sales jumped 40% in the first quarter because reps could always see their next attainable goal.
The New Incentive Playbook:
Base Program:
Competitive base salary
Progressive commission rates
Quarterly accelerators
Annual overachievement bonus
Performance Multipliers:
New customer acquisition bonuses
Cross-selling incentives
Customer retention rewards
Strategic product focus spiffs
Activity Accelerators:
Daily/weekly activity goals
Pipeline development rewards
Lead conversion bonuses
Meeting attendance spiffs
But here’s what nobody talks about: The best incentive programs create positive tension. Too easy, and there’s no motivation. Too hard, and people give up. You want your team stretched but not stressed.
Warning Signs Your Incentive Plan Is Failing:
Top performers barely hitting targets
Gaming the system
Focus on wrong metrics
High turnover
Sandbagging deals
Success Markers:
Consistent overachievement
Healthy competition
Strong team collaboration
High employee satisfaction
Predictable revenue
The Secret Sauce: Stack Your Incentives
Instead of one big goal, create multiple winning opportunities:
Daily wins (activity metrics)
Weekly achievements (sales milestones)
Monthly targets (revenue goals)
Quarterly bonuses (strategic objectives)
Annual rewards (overall performance)
Remember: The best incentive plans drive the right behaviors, not just results. If your team is hitting numbers but burning bridges, your plan is broken.
Implementation Tips:
Keep It Simple
Clear rules
Easy calculation
Regular payouts
Visible tracking
Make It Fair
Attainable goals
Level playing field
Territory balance
Equal opportunity
Stay Flexible
Regular review periods
Market adjustments
Performance calibration
Strategy alignment
The best way to structure an incentives program to drive up sales varies from business to business. We have helped implement these into a number of businesses and use them regularly within our own businesses and every one is different. Contact us if you need some expert guidance to get that sales team selling like never before.