Sales compensation, incentive compensation, team incentives, bonus: Colletti-Fiss

Colletti-Fiss, LLC is a consulting firm that helps management make decisions about programs that increase sales results. We focus on three areas of sales effectiveness: jobs design, performance management programs, and sales compensation plans. We are passionate about helping our clients use these programs effectively so they can grow profitably, serve customers wisely, and reward employees appropriately for achieving business objectives.

Gross margin is often used to measure the quality of the business sold by a company's sales force. At your company, what role does gross margin play in the sales force's compensation: (Select all that apply.)

No role; a gross margin measure is not included in the plan for sales reps

A portion of sales reps' incentive pay is based on total gross margin dollars generated (either from first dollar or compared to a goal)

Gross margin percent (either absolute measure or compared to a goal) is used to calculate a portion of sales reps' incentive pay

Gross margin measurement (either $s or %) is used in the first and/or second level sales managers plans

No role; however, we are considering including a gross margin measure in the next plan revision

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