Sales Commission Structure: Best Practices, Benchmarks, and More

Sales commission structures help reps focus on the right outcomes.
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A company's sales commission structure must be carefully crafted to drive top-tier performance. But it’s not the only factor contributing to compensation success: You must constantly look for new ways to adapt and keep pace with a changing marketplace.

And sales managers are doing just that. Nearly two-thirds (60%) of sales managers are adjusting their compensation plans amid the economic downturn. Most (95%) would agree that being able to seamlessly roll out plan changes is important — if they had this capability, 53% would change plans quarterly, while 32% would change them monthly.

But uncertainty in the current economic environment makes forecasting growth, sales planning, and evolving commission structures more complicated than ever. That’s why every company can benefit by becoming more agile. With more visibility and streamlined processes, sales leaders can review performance data and easily update coverage models and compensation plans based on hard numbers rather than anecdotal evidence. As a result, they are less likely to make mid-course corrections and risk undermining confidence in their teams.

In this guide, we offer actionable insights, best practices, and benchmarks to help you get the most out of your sales commission program.

You'll learn:

  • Common types of commission structures
  • Opportunities to better balance driving the right rep behaviors and aligning compensation plans with business requirements
  • Four key sales commission trends that you can act on now