incentive structure for sales


What are structured incentives?

    Structured incentives are well outlined as part of pay incentive programs and typically include a monetary award paid at a percentage rate of an achieved sales or production target. When it comes to the types of incentive pay that companies offer employees, there is a wide variety of options.

What are sales incentives?

    In the most basic terms, sales incentives go to salespeople who meet certain sales targets, in addition to their standard compensation as a form of rewards or bonuses. Sales incentives can also come in either monetary or non-monetary forms. Non-monetary incentives can be anything from a flatscreen TV to a paid vacation or time off.

What is the most common sales incentive performance metric?

    By far the most common sales incentive performance metric is revenue. But paying for revenue alone doesn't mean that most sales incentive plans fail to reward for profitable sales. The reality is that a true 'profit' metric is often hard to measure and track at the individual salesperson level.
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