HomeResearch Articles Sales Compensation Plan Design: Margin Performance Measures

Sales Compensation Plan Design: Margin Performance Measures

  • Linking compensation to margin performance is often ineffective at the individual rep level
  • Factoring margin performance into compensation works best for upper-level sales management (e.g. region, division, corporate)
  • For sales roles with limited ability to affect margin, use discount authorization schedules to manage margin indirectly
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