What is sales incentive compensation?

Sales Incentive Compensation refers to the variable pay or rewards offered to sales employees based on their performance, usually tied to meeting or exceeding sales targets. These incentives can include commissions, bonuses, prizes, or other financial and non-financial rewards. The goal is to motivate sales teams to achieve higher sales and align their efforts with the company's overall business objectives. Effective sales incentive programs are typically structured to be fair, transparent, and directly linked to measurable results.