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Elements of Sales Compensation

Take an In-depth Look at Sales Compensation

This class presents the fundamentals for the design and implementation of sales compensation plans tailored to a company’s business strategy. Emphasis is placed on the special terminology and issues that make sales compensation unique from other incentive plans. Participants are presented with several design options and related information in order to assess which sales compensation approaches may be appropriate for a given company. Participants are also introduced to critical implementation factors including financial modeling of the proposed plan, employee communication and plan assessment over time.

  • Discuss sales compensation rationale, value and uniqueness.
  • Identify the key influences to all sales compensation plans.
  • Discover the six key components of a basic sales incentive.
  • Find out how to introduce a new or revised incentive plan to the sales force.
  • Review why sales incentive plans fail and ways to determine if your plan is working properly.
What You Will Learn  |  More Info

Learning Options


Course Schedules
Oct 18 - 19
9:00 AM
Elements of Sales Compensation
(This course is taught in Mandarin)
Shanghai China
Contact Sponsor
Jun 13 - 14
8:30 AM
Elements of Sales Compensation
(Greater Toronto Area Rewards Association)
Toronto, Ontario Canada
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Elements of Sales Compensation
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What You Will Learn  

Sales Compensation Terms and Definitions

  • The total rewards model
  • The purposes of sales compensation
  • Uniqueness of sales compensation
  • Key sales compensation terms
  • Incentive payment methods

Influences on Sales Compensation Design

  • Drivers of sales compensation design
  • Go-to-market strategy
  • Sales channels
  • Direct sales channel
  • Indirect sales channel

Design Components

  • Eligibility
  • Target cash compensation
  • Pay mix
  • Calculation methods
  • Performance measures
  • Performance and payout arrangements

Plan Refinement and Testing

  • Calculating formulas
  • Quotas
  • Testing through financial modeling
  • Special considerations

Plan Implementation

  • Plan terms and conditions
  • Plan qualifiers
  • Employee administration
  • Integration with other programs
  • Handling plan changes
  • Employee communications
  • Tracking and payment administration

Assessing Plan Effectiveness

  • Plan evaluation
  • Failing plans
  • Assessing the plan
  • Sample analysis
Who Should Register  
The course is designed for compensation and sales administration personnel relatively new to the sales compensation field and who are involved in designing, implementing and administering sales compensation plans.
How to Register
More Information  
 Course Credits
Recertification: 2 Credits
CEUs: 1.5 Course
PHR/SPHR/GPHR recertification
Hours: 14 (classroom)
 Course Book Amendments


  • 877-951-9191
    (United States and Canada)
  • +1 480-951-9191
    (other countries)