The sales force is comprised of individuals who take an active approach in getting the message out about the company's products and services. How effectively the sales team markets the company, and in turn, howsuccessful the organization is, is directly related to the sales compensation program. A sound sales compensation package enables the organization to focus sales activities towards business results, and rewards these outcomes with compensation that is tied directly to the level of performance achievement.

The key to a successful sales compensation program can be achieved in three steps:

• Clearly Defined sales goals that are realistic, but challenging
  
• Tracking and measuring performance against goals and objectives
  
• Rewarding performance achievement with competitive and motivational compensation

Sales Compensation packages typically comprise of one or more of the following components:

• Base Salary
  
• Periodic Incentives tied to short-term goals
  

• Annual Incentives tied to longer-term sales activities
  
• Sales Commission-based incentives
  
• Perquisites to facilitate sales efforts