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May 06, 2010
Structure of Team-Oriented Sales Compensation

In a BLR webinar entitled "Sales Compensation Strategies: How to Motivate and Re-Energize Your Sales Staff in a Challenging Economy," Dan Kleinman, principal of Dan Kleinman Consulting, a compensation and human resource consulting firm, explained that the first step toward a team-oriented sales compensation structure is to differentiate between sales and sales support. Sales actions encompass:

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  • New selling
  • Cross selling
  • Up selling
  • Renewals

Support actions encompass:

  • Installation
  • Upgrades
  • Servicing

A compensation breakdown for a first time sale might look like this:

  • Generating:10% sales staff , 0% support staff
  • Clarifying:15% sales staff, 70% support staff
  • Closing: 75% sales staff , 30% support staff

A compensation breakdown for an ongoing relationship might look like this:

  • Selling: 75% sales staff, 25% support staff
  • Follow up: 20% sales staff, 15% support staff
  • Support: 5% sales staff: 5%, 60% support staff

Team selling only works if it reflects the way you want to sell to clients, if your staff is skilled and oriented toward a team approach, and if you promote and reinforce it.

Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. For the past 18 years, he has served as an independent consultant for a broad spectrum of regional, national, and international companies, providing compensation, performance, organizational planning, and reward-system design services. He may be reached at

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