The Matrix (for your sales program)

The way a company pays its sales people can make or kill the company’s sales program. Very rarely do I encounter a start-up that provides the right balance in base pay, incentives and minimum targets that motivate its sales force.

Base pay is the minimum amount a sales person will make whether they perform or not. I have always looked at the base pay as a draw against the minimum target that the salesperson is supposed to achieve in order to keep the base.

Matix of Paying Salespeople

Getting the sales program right is a delicate balance; It isn’t rocket science, just a simple understanding of human psychology. When a tech, operations or finance program creates the sales program it invariably ends up being lopsided. Therefore, in my opinion, the sales program should only be designed by a salesperson that is part of the core team and preferably the best sales person in the company. A bad sales program can destroy the best of companies.

How does your sales program fare on this matrix?