Employees with a job in sales make a base salary and often a sales commission for meeting or exceeding particular sales targets. A sales commission is an additional compensation the employee receives for meeting and exceeding the minimum sales threshold.
Employers must design an effective sales compensation plan that rewards the behaviors that the organization needs to promote. For example, if your inside sales team works with the same customers and any salesperson can take a call or respond to a customer’s request for a quote, you will not want to pay a sales commission based on individual performance. You will instead want to share the sales incentive equally across members of the sales team, to encourage teamwork. People who work in a shared commission environment tend to help each other out regularly. An individual sales commission in this teamwork environment would cause disharmony and place emphasis on the wrong selling behaviors