To ensure sales reps close high-quality deals, link their compensation to a leading indicator of retention (LIR). Pay a portion of the commission upon signing and the remainder when the customer hits a predefined usage milestone, aligning incentives with long-term value.

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.

To solve the persistent issue of sales and marketing misalignment, structure executive compensation around shared company revenue goals. When leaders' bonuses depend on overall revenue attainment rather than departmental metrics like pipeline or MQLs, it forces genuine collaboration and a unified focus on winning.

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.

Instead of paying commissions solely on bookings, align sales incentives with long-term company health. By calculating Lifetime Value (LTV) by customer segment and paying AEs more for acquiring high-LTV accounts, you motivate them to pursue profitable, sticky customers.

Don't finalize a comp plan in an executive silo. Share the draft with trusted, top-performing reps and ask them to break it. They will immediately spot loopholes and unintended incentives, allowing you to create a more robust plan that drives the right behaviors from day one.

Many sales plans fail because they focus only on the end goal, like a revenue target. A more effective approach is to plan the specific, repeatable behaviors required to achieve that outcome, such as identifying a list of target conquest accounts. This turns a 'vision board' into a concrete action plan.

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.