Directing average people to perform at

above-average levels

 Motivational
 Compensation
 Leadership
Sales Manager’s Motivation Mix
Compensation Is More Than
Money
Sales performance can be rewarded in three
fundamental ways
Direct financial rewards
Career advancement
Nonfinancial compensation
Although a sales reward system is not the only means
of motivating salespeople, it is the most important
Compensation package is affected by multiple
forces:
A balance between company policies and
competitive parity is to be maintained.
Total compensation package includes financial
Salary, commission, bonus, stock options,

benefits
 and non-financial incentives
Awards, recognition, vacation, and promotion
Three basic plans of financial
compensation
Straight salary plan
Straight commission plan
Combination plan
Straight salary plan
Salesperson paid a set amount of money based
upon hours or days worked

Often adopted when salesperson must devote

significant amounts of time to other duties
Simple to administer by sales manager
But, no direct link between performance and
reward!
Straight commission plan
Straight commission plans
Three basic elements of straight commission
Pay is related directly to performance
A percentage rate of commission is attached
to the unit
A level at which commissions begin or change
is established
Drawing accounts combine the incentive of a
commission plan with the security of a fixed
income
Combination plan
Salary and commission
Salary and bonus: individual bonus or
group bonus
Salary, commission, and bonus:
individual bonus or group bonus
Nonfinancial Rewards
Achievement or recognition awards
Transfer to larger, more challenging sales territories
or promotion to key account management
Sales manager’s praise
Leadership Is Important
The leader’s task and relationship behavior
Task behavior involves the leader in describing the
duties and responsibilities of an individual or group
Relationship behavior is people-oriented
Leadership styles