People who enter Sales often know that there is a commission-component to their overall salary. This is the structure of it commission plan that can make the difference between amotivated team and a constant turnover within your organization.

Decide how to compensate your sellers for their efforts, however, can be tricky. If it’s too easy to win commission, anybody will be want to go the extra mile to get bigger deals and you will lose money. However, it shouldn’t be that difficult as your people leave for a company with better incentives.

According to Forbes Business Development Council, Here is new different ways to structure your commission plans, as well as why each is effective in motivating Sales representatives.

Photos courtesy of individual members.

1. “Eat what you kill”

I always push for a significant portion of compensation to be focused on new business and growth. I’ve come to find that the “whatever you kill, you eat” philosophy is a huge motivator. Yes your the processes are clear, it makes those who are really hungry all the more energy to succeed. An incentive to bring in new business shows the relationship manager seller. – Christopher Kingman, Trans Union

2. Simple and tiered rewards for exceeding quota

Sales organizations often “overdesign” their commission plans, with the mistaken belief that these types of plans will be dictate the behavior of the representative. Too complicated commission blueprints are a distraction to the field and often don’t create the desired results. I’m a fan of simple, multi-tiered commission plans with accelerators that reward reps not for meeting quota, but for exceeding it. – Jim Ninivaggi, Brainshark

3. Return on time invested

Think in terms of time invested. I am more willing to offer a monetary reward if there is a return on time invested (ROTI). If a salesperson isn’t investing the time to work and nurture a prospect, why should they close? Time is an invaluable currency, so my sales reps need to value it first and foremost. If they make the effort to focus on a prospect, that’s when they will be to be rewarded. – Christian Valulius, Automatic payroll systems

4. 60% guaranteed, 40% commission

Create a total compensation plan that targets 60% of compensation as a guaranteed salary. This allows you to attract the best Sales talent because most good salespeople will be don’t quit your current role for a top-heavyweight commission structure. The remaining 40% of their remuneration is based on Sales. Break it down to align with growth, retention, number of customers, total revenue, and business goals. – John Tadin, Gallagher

5. Rewards for achieving business goals

More Sales compensation plans include a base salary and commission to ensure that there is a portion of guaranteed income for sellers. the commission the component must be directly linked to your business goals. At Microsoft, for example, two of the things we focus on are cloud growth and acquiring new customers. Therefore, our commission plans are aligned with these priorities. – Rakhi Voria, Microsoft

6. commission which reflects the Sales Cycle and transaction size

Effective commission structures are aligned with a clear GTM strategy, often requiring separate compensation plans based on target market and path to market. People involved in transactional versus corporate business need a compensation structure that reflects the nature of the different Sales transaction cycle and size. The use of multipliers or SPIFF can be applied to favor the desired results. – Norman Gennaro, zendesk.com

7. Percentage on marker numbers

For commission, my approach is to dungeon the salary a bit lower with good incentives. For example, do percentages at certain benchmarks. Half a million equals 2%, one million equals 3%, two million equals 5%, etc. These incentives will be make the seller want to go further to reach these figures. – Craig McGraw, Transamerican Trucking and Warehousing

8. Incentives for Good Behaviors and Positive Outcomes

Sales Incentives should do two things: motivate good behavior and reward good results. Too often, leaders devise incentive plans to do a third thing: discourage bad behavior. This is how incentives become complex and convoluted. Sales incentives cannot replace Sales management, so don’t try to use them as “managers in absentia”. dungeon it’s simple, and dungeon he concentrated. – Jason Jordan, Performance from the point of view

9. A structure adapted to the individual

To understand what motivates salespeople, you need to understand the personality type you’re working with. It’s easy to create an attractive commission structure but it is more important to improve your the pride of the teams and loyalty to the company. This can be done in many ways and it is our job as managers to understand when we should use promotion, incentives, rewards, competition or recognition. – Dane Matheson, Alpha