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Mauricio Duran 07.22.2016 3 min read

New Product Line: How to design its commission plan?

Prepare a winning strategy for your new product line, and conquer your goals

It is no secret that commissions can accelerate with the introduction of your new product line. This happens because with a new product line, sales reps are commonly required to direct more time and energy to nontraditional customers. In this case, the sales commission plan should apply bigger incentives to get that new product sold.

Assigning a commission for a new product line can become an issue when there’s uncertainty due to the lack of historical sales data. What, then, should you rely on? Look for data that reflects potential like market sales, competitive sales, or demographic information. If uncertainty persists to set territory-level, each salesperson should earn a commission percentage on every sale.

Of course there has to be a balance.

If there’s an additional commission for your new product, you should think about an additional commission on existing products sales. What do I mean by that? Well, let’s say that in addition to the commission for the new product, if one of your sales reps achieves his sales goals for this new product, he will receive an additional 5% commission on all the product sales. Never use the same payout schedule for the new product line as for the existing products.

New product line sales should keep reps engaged

Pay commissions with the goal of sales growth in mind. Encourage your sales team to continue building sales momentum and drive product success. This will turn commissions on the new product lucrative and your sales team will devote almost all its time to your new product.

What about a SPIFF or a contest?

This will provide the necessary impetus to focus your team’s effort. Your new product line should be a hard launch, and market segments threatened by competitors need to be defended. The sales team needs something really motivating to accomplish all your sales objectives.

Gaining more experience in the market

The more growth and experience your product team acquires, the more predictable sales become. Therefore, the product will gradually incorporate into the sales department’s usual quota commission plan.

Remember that any modification you need to perform on your commission plan for your new product line should be applied effectively. That’s why Blitz is here to automate your processes and be sure everything runs smoothly. Turn your commission plan into a great motivator for your sales force.


  • Action Plan for Sales Management Success: Not just What To Do But How To Do It. Susan A. Enns. 2010: B2B Sales Connections.