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Rethinking Sales Compensation

The goal of sales compensation is to produce optimal sales performance and drive business results. Yet less than 9 percent of U.S. companies believe their sales compensation plan consistently drives precise selling behavior. This results in companies wasting hundreds of billions of dollars and failing to achieve their business objectives.

Harvard Business School’s Frank Cespedes has looked closely at sales compensation and has discovered why so many companies have sales compensation plans that don’t work. He has found that companies often buy into conventional wisdom, which holds that:

  • Money is the only motivator

  • Comp plans must be simple

  • We pay for results, not process

However, these assertions are false, can be damaging, and need to be reexamined. Compensation is just one part of strategic sales performance management; without the link to a bigger strategic plan, even the best compensation plans won’t pay off.

Watch this Harvard Business Review webinar and listen as Cespedes shares insights from his study of sales compensation, describe why so many companies make mistakes with sales compensation and provide practical advice on linking strategy and sales in a way that produces real business value.  Learn how to avoid common sales compensation mistakes and how to create a sales compensation plan that works.

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