To maximize earnings, salespeople shouldn't just passively accept a comp plan. They should actively engage with the compensation team or their manager to understand the plan's underlying business intent. This proactive approach uncovers the true priorities and reveals the most effective path to higher earnings.

Most sales teams function like golf or swim teams—a group of individuals pursuing personal commissions that are later aggregated. This is unlike interdependent teams like basketball. Leaders must recognize this structure to connect effectively, starting with the individual, not the group.

Many companies mistakenly hire salespeople and then define their job and compensation. The correct sequence is to first determine the business need, then construct the specific job role to address it, and finally design a compensation plan that incentivizes the required activities before ever posting the job.

To powerfully reinforce desired behaviors, compensation plans must connect the reward as closely in time as possible to the sales activity. This "proximity principle" is more effective than distant, larger payouts because it creates a clear and immediate link between action and incentive, even if the initial payout is smaller.

Salespeople's biggest frustration with comp plans is being held accountable for outcomes they can't directly influence. This perceived unfairness is a primary driver of attrition, making it critical to align incentives strictly with a seller's direct responsibilities and control.

Many leaders mistakenly manage their team as a single entity, delivering one-size-fits-all messages in team meetings. This fails because each person is unique. True connection and performance improvement begin by understanding and connecting with each salesperson on a one-on-one basis first.

Sales compensation is the most powerful lever for changing a sales team's behavior quickly. More than training or directives, incentives tell reps what they are supposed to do and why, directly shaping their daily actions and strategic focus.

While rewards can remind people of expectations, they are poor at building skills. Research shows a strong negative correlation between using external rewards (e.g., money) and developing intrinsic motivation. The more you motivate externally, the more you may weaken internal drive.

Employee retention now requires a customized approach beyond generic financial incentives. Effective managers must identify whether an individual is driven by work-life balance, ego-gratifying titles, or money, and then transparently tailor their role and its associated trade-offs to that primary motivator.