Header Logo
Blog Resources About FAQ Contact
Log In
← Back to all posts

Do I Need To Create Sales Compensation Plans?

by Shirah Smail
Nov 16, 2024
Connect

commission plan or sales incentive plan or sales comp plan template

If you just started hiring your sales team, you may wonder if you need to give them a sales compensation plan (also known as a “commission plan”) to sign.  You may think “It’s only 2 sales people, we can have a verbal agreement”.  Well, you can definitely choose to do that if the sales professional agrees, but its best practice to give them a plan.  Here is why…

Subscribe to keep reading this post

Subscribe

Already have an account? Log in

Loading...
Are you hiring fairly?  If not, it may cost you
Before presenting an offer to a salesperson, think - is your company being fair in their decision making?  If not, it may cost you.  In August of 2025, the owners of a certain automobile dealership had to pay $275,000 (+ other relief) to settle a U.S. EEOC lawsuit related to their hiring process. So, what happened? Subscribe to keep reading this post newsletter-post-show-join-t...
How Much Are Your Sales Commission Plans Costing You?
One of the most important questions that company leaders ask is “How much are these comp plans going to cost us?”  That is where plan modeling or costing comes in.  This is the time of year when companies are creating sales compensation plans for next year.  They usually invest time in determining the best mechanics (e.g. thresholds, accelerators, caps, etc.).  They also spend an extensive am...
Recoverable Draw vs. Non-Recoverable Draw
If you have ever been in a sales role, or played a part in a sales compensation program – then you most likely have heard the term “draw”.  There are two main types of draws, recoverable and non-recoverable.  There are two types because they accomplish different objectives and are processed differently.  Depending on your objective, you can utilize draws to enhance your sales compensation pro...
Footer Logo
Terms & Conditions Privacy Policy
© 2026 Sales Comp Academy
Footer Logo

Join Our Free Trial

Get started today before this once in a lifetime opportunity expires.