Do Sales Incentives Really Motivate Salespeople?
Here is a question I recently received from a sales manager: “I get a decent budget for sales contests and our team is spoiled by ‘big money prizes.’ What successful ideas do you have to get salespeople motivated without always having to win something?” This question points out a common problem with sales incentive programs, which is that the newness and excitement can wear off quickly. Salespeople may come to see incentives as just another component of their overall sales compensation. Does this mean that money and prizes can never motivate salespeople? Of course not! Let me share two examples from my own experience. In one of my past sales jobs the compensation plan offered a $500 bonus for achieving each quarterly budget and another $500 bonus for achieving the annual budget. Salespeople could earn a total of $2,500 in bonuses (on top of commissions) if they achieved each of the four quarterly budgets and the annual budget. I can vouch for the motivational value of this type of bonu
