Top 5 Sales Compensation Plan Templates with Samples and Examples

Q: What are the types of sales compensation?

Some main types of sales compensation are the following: • Straight Salary: It is a fixed salary in a payment plan that is a reward for performing certain tasks or jobs over some time. • Salary plus Commission: Under this plan, a person gets a base salary along getting a commission on sales. Commission motivates salespeople to increase productivity. • Bonus: Bonuses are paid when the salespeople accomplish a specific or assigned task like reaching a sales quota, obtaining new accounts, setting up displays, performing promotional activities, following up leads, etc. • Commission: Salesmen get income when they accomplish their sales quota. However, if the salesperson does not sell anything, they will not get any income. • Quota-based Plan: During this plan, a certain fixed quota is assigned to each salesperson to achieve in a specific time. So, when they achieve, they get an incentive. • Expenses Allowance: In this plan, the salesperson gets an expense allowance for travel, dining, lodging, entertainment, etc. • Profit Margin: The Company can make a policy in which a certain percentage of profits is paid to the salesmen according to their performance and output. • Territory Volume: This type of plan is based on teamwork where each salesperson supports each other to achieve common targets and incentive is equally divided among all of the salesmen.

In this highly competitive business world, it is crucial to drive your salesforce and direct it to sell the right products at the right time. To enable this, you must create a strategic Sales Compensation Plan that inspires and empowers your sales teams to outperform the competition.

An effective sales compensation plan encourages positive behavior among employees, determines how much they earn based on their performance, sets expectations & standards, and define overall organizational goals and objectives.

Creating a sales compensation model can be challenging, from ideation to implementation to management. To help you streamline the process of compensation planning, SlideTeam presents a valuable collection of Sales Compensation Plan Templates.

These PPT Samples allow you to set sales quota & benchmark metrics, review performance measures, check the frequency of payments, track on-target earnings, etc. All these templates are customizable and easy to save.

Sales Compensation Plan Templates

Explore our top 5 Sales Compensation Plan Templates that simultaneously promote business success and align with the company budget.

Template 1: Sales Team Compensation Plan Performance Measures Template

Make a result-oriented and well-structured compensation plan with this extensive template and motivate your sales team to achieve their sales quota. This template allows you to break down all factors of a sales compensation plan and highlight other relevant information in a particular section. Want to build a big sales pipeline for your business? Then get it now.

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Template 2: Choosing Suitable Sales Compensation Plan Creating Competitive Sales Strategy

Inspire your sales team by mentioning salary sales compensation, bonuses, commission, salary plus commission, incentives, profit margin, etc. in detail with this lucrative template. Motivate them towards their specified goals and targets. Use this template and nail your start-up sales operations, hit your revenue, drive profitability, and growth targets, and get a better return on investment (ROI).

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Template 3: Sales Team Compensation Plan Performance Measures PPT Template

This outstanding template helps you define how to pay different salespeople for their contribution to the sale business. You can also measure various aspects of a sales compensation plan process like monitoring the relationship between performance and pay, differentiation of low and high performers, attainment of goals, etc. If you want to guide your sales team to perform well? Download this template right now.

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Template 4: Corporate Sales Compensation Communication Plan

Grab this professional-looking template that helps you to identify and understand certain key factors to grow your business at a faster pace. Leverage several methods to communicate a sales compensation plan with this template through written documents, group presentations, video interaction, 1:1 discussion, etc. This scalable template gives a huge impact on the culture of your company’s sales and pushes your salesmen to exceed your revenue targets.

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Template 5: One Pager Sales Compensation Plan PPT Presentation

With this template design, the salespeople can understand the underlying dynamics of the sales compensation plan. Also, business leaders can track and estimate the sales compensation of the salespeople based on their performance. This template helps set up a sales compensation program that contains sales support, a range of sales and management roles, and how teammates and peers like account managers, business developers, market specialists, channel partners, field representatives, etc., will work together.

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The Bottom Line

Our cutting-edge sales compensation plan templates nurture positive relations between employers and employees, thrive company culture, and set the foundation of an impressive atmosphere. So, if you want to elaborate the outline of the sales compensation plan in front of your employees with transparency, then grab our ready-made sales compensation plan templates that can be easily customized and edited according to your requirements.

FAQs on Sales Compensation Plan

What is an example of a compensation plan?

A compensation plan comprises the details of the base salary, commission, bonus, allowances, incentives, etc. that showcase the earnings of a sales representative. With this plan, the business leaders drive performance as well as increase the revenue of their company. A sales compensation plan plays an essential role in an organization to encourage cooperative behavior in the staff and to achieve overall organizational goals, objectives, and outcomes. Some comprehensive sales compensation plan consists of additional benefits such as commission, retirement investments, perks, health insurance, bonuses, etc. for the salespeople.

What are the types of sales compensation?

Some main types of sales compensation are the following:

Straight Salary: It is a fixed salary in a payment plan that is a reward for performing certain tasks or jobs over some time.

Salary plus Commission: Under this plan, a person gets a base salary along getting a commission on sales. Commission motivates salespeople to increase productivity.

Bonus: Bonuses are paid when the salespeople accomplish a specific or assigned task like reaching a sales quota, obtaining new accounts, setting up displays, performing promotional activities, following up leads, etc.

Commission: Salesmen get income when they accomplish their sales quota. However, if the salesperson does not sell anything, they will not get any income.

Quota-based Plan: During this plan, a certain fixed quota is assigned to each salesperson to achieve in a specific time. So, when they achieve, they get an incentive.

Expenses Allowance: In this plan, the salesperson gets an expense allowance for travel, dining, lodging, entertainment, etc.

Profit Margin: The Company can make a policy in which a certain percentage of profits is paid to the salesmen according to their performance and output.

Territory Volume: This type of plan is based on teamwork where each salesperson supports each other to achieve common targets and incentive is equally divided among all of the salesmen.

How do I set up a sales compensation plan?

There are some tips to follow while setting up a sales compensation plan:

Prepare a sales compensation plan according to the internal company data and external market analysis.
Outline the purpose of this plan with company values and objectives and mention crucial factors such as a method for the establishment, pay-per-performance strategy, compensation framework, management, and maintenance.
Explain the sales compensation plan to the employees in detail, thus, they can feel comfortable and invest their full efforts into their tasks.
All the terms and conditions of the compensation plan should be simple and easy to understand which promotes a strong employer-employee relationship as well as avoid legal misconduct and disagreements.
Analyzing each position, skill, component, educational level, etc. of each job in the company so that HR professionals can assign the roles, tasks, and responsibilities to the employees accordingly.

What are the key components of a sales compensation plan?

There are some necessary key components of a sales compensation plan that are required to operate it at the highest possible level:

Compensation Charter: Alignment between the sales compensation plan and overall business objectives is mandatory to make it successful.

Plan design: Design the various elements of a sales compensation plan that will maximize motivation for the salesperson. However, it should be flexible so that you may change it accordingly if required.

Target Setting: Set the sales compensation expectations to make a sales compensation plan process. Make simple and effective the go-to-market approach of the company to accomplish the sales operations objectives.

Deployment: Craft final copy of plan updates and mention communication strategies to boost sales.

Management: Manage the sales compensation plan process day-to-day and its payments. You can optimize the process with integrated data that gives accurate real-time pay-out details.