Commission Versus Quota - Sales Influence Podcast - SIP 593

Compensation Strategy

1. 💰 Compensation plans directly influence salesperson behavior, with effective plans tying quotas to pocketbook to motivate salespeople to hit numbers and grow the company.
   
   
2. 📊 Quota-based commission plans can be designed to provide a bonus for exceeding quota, motivating salespeople to push beyond their targets.

Psychological Factors

1. 🧠 Commission plans should be designed with psychological considerations in mind, as they significantly impact salesperson behavior and motivation.

Performance Drivers

1. 📈 Commission tied to quota motivates salespeople to hit their numbers, offering a higher percentage of sales revenue when meeting or exceeding quota.
   
   
2. 🎯 When salespeople aren't meeting quotas, the primary issue is often the compensation plan, not sales training, as it fails to provide adequate motivation.