Sales Commissions 101: All you Need to Know about Sales Compensation

By Hector Salinas

Every business or company wants to become the best. This factor can make competition in a particular industry become fierce. When everyone is trying to compete in the market, you also need to keep up and strive to be the best.

Maintaining a high position in a competitive market is not easy. A lot has to be done to ensure you meet the demands in place for your company to be the best. This piece is set to help you understand sales commission and how they work, a wide range of other tips and all you need to know on sales compensation.

What can sales commissions plan do to your business

There are a lot of platforms that try to explain and give solutions for a perfect sales commission plan. However, it is essential to take a closer view at how things are supposed to work. There are key factors that help in making a sales commission plan and how it should be used in a business.

You need to be an agile sales company, meaning that someone keenly monitors your performance then comes up with ideas and decisions that are informed. Your company should be willing to adjust and adapt to the new changes. The following are tips on how your business can maintain its position in the industry.


Your business ought to be data-driven. This is a requirement for any sales company. Being data-driven means that you compile the data then use it in making informed decisions and plans on how to push your sales up.

Ensure your information is organized and well structured for you to make any decisions. Failure to organize the data may present problems when looking for insights on it. Try the regular cleanup of information and record it accurately. The next step after cleanup is to ensure your data is usable, this means it can be automated and manipulated as necessary.


You can plan and analyze the performance of your organization through sales management platforms. This management platform is software made up of functions and tools for compiling sales processes.

Sales management software is specifically designed to enable your business to operate smoothly and effectively by a continuous analysis of all the data required. There are some key features you need to consider before settling for this platform. They include:

All in one sales planning

Planning is essential and it is among the core requirements for any sales you make. Any sales management software should be able to offer you the planning capability for your revenues and an accurate overview of your business. A good commission software should accomplish all of these tasks at once and give you the best solutions without having to use any other tools.

Integrated sales performance management platform

These platforms are made up of a number of tools used to improve performance and planning in an organization. This means you need to go for a platform that guarantees you a transparent approach for quota planning and sales capacity.

Try to consider software that is easy to use with additional platform solutions in case of future needs.

Performance optimization and analysis

Access to real-time insights is needed for you to analyze your performance. Every platform should provide a clear breakdown for you to make optimized plans. Look for sales commissions software that gives you an industrial production to enable you to locate and eliminate any pay gaps.

Certification and training

You need to have knowledge of how to use the solutions effectively. Get commissions software that provides easy training for you to learn the skills required. There are online courses or sessions that are used for training purposes. You may need to consider the above-discussed factors before arriving at the platform of your choice.

Sales compensation

This is an amount of money the salesperson is paid. Sales compensation is a crucial thing when trying to maintain the abilities and talents of your team. Get this part right, and you will be heading for success.

This can sometimes be quite challenging because people under the sales department require different packages based on sales strategies and plans. This means that you have to ensure everything is balanced before assigning your resources to them.

Purpose of a sales compensation

The compensation is used to act as encouragement for positive behaviors in a team. This makes your sales team more active in what they do; thus, the objectives of a business can be achieved.

You are supposed to look for a compensation plan that is structured well and does not cause any losses to your business. Many businesses are now switching to the use of software to track how their commission should be paid. This eliminates a lot of human errors and is a better option compared to other means of calculating.

An in-depth analysis of the sales is given, and the right compensation is given to the employees. It is good to adapt to such technological advances as the benefits are immense. When looking for platforms that help you achieve your business goals, Jim Konecsni, who is one of our main controllers, once said, “Blitz helps increase sales team morale and productivity.”   

Tags: Commissions, Sales

About Blitz

Blitz is a global software for sales commissions. We help our clients to track and calculate sales commissions effectively and on-time.