Sales Commission - What Return Should You Expect On Your Sales Compensation Investment ?
This article answers the following questions :
- How do most companies look at return on investment (ROI) for their sales compensation expense?
- What portion of sales compensation expense do companies allocate to managing existing accounts versus pursuing new accounts?
- Do most companies expect their salespeople to generate new, additional gross profit each year that is equal to or greater than their compensation?
One conclusion I have reached after working with many different kinds of companies is that there is little commonality in how they establish the desired return on investment (ROI) from their sales compensation investments. Every company’s circumstances are different; as a result, what might constitute an acceptable ROI for one company will not be considered acceptable by another company.


