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How Does SalesVista’s Commission Management Solution Help Companies Simplify Comp Plans?

Convoluted comp plans drive more confusion than success. To motivate sales performance, do yourself and your reps a ...


Convoluted comp plans drive more confusion than success. To motivate sales performance, do yourself and your reps a favor: Keep it simple.

Compensation plans come in all shapes and sizes, which is convenient when you’re seeking a sales comp strategy to complement your company goals. Common compensation models include:

  • Base salary plus commission
  • Base salary plus bonus
  • Commission only
  • Gross margin commission
  • Absolute commission
  • Straight-line commission
  • Activity-based commission

Simplicity is critical to a successful sales compensation plan. Spreadsheets and manual data entry contribute to comp plan chaos and complexity. Errors add up, and your sales team spends more time untangling numbers than generating sales.

Compensation plans should be just complex enough to drive sales performance — and simple enough for new sales reps to grasp by the end of onboarding. A pared down comp plan is accessible, accurate, transparent, and easy to comprehend. So, the simpler, the better.

Consider these strategies for limiting comp plan complexity:

  • Limit comp plan elements.
  • Align compensation with company goals.
  • Benchmark compensation against industry data.
  • Plan an effective comp plan rollout.

Motivation incentives work better when sales reps understand exactly how their compensation works — and simple comp plans are simply easier to understand.

Simplify comp plan management with an accessible, transparent, and secure commission management solution. Schedule a demo with SalesVista.com today.

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