What is a Sales Compensation Plan? A sales compensation plan lays out how you are going to pay different salespeople for their contribution to the business. Typically it will include two main elements: base pay, and variable pay, sometimes known as incentive pay, or commission.

What is sales compensation plan on sales?

Sales compensation refers to the payment a salesperson receives for their work. As a rule, it includes a base salary, commission, and additional monetary incentives to motivate a sales representative. Sales compensation should be well-planned to drive the sales team's performance to success.

What does sales compensation mean?

Sales compensation is the amount paid to salespeople based on their performance against predetermined targets. Compensation can be salary, commission, incentives or a combination of these payment types.