Compensating the Sales Force: A Practical Guide to Designing Winning Sales Reward Programs, Second Edition

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McGraw Hill Professional, Jul 16, 2010 - Business & Economics - 272 pages
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The classic guide to raising your bottom line with the perfect compensation strategy—fully revised and updated!

Sales compensation WORKS!

Nothing motivates a sales force better than a powerful compensation program. And when your salespeople are motivated, revenue soars. But how do you design a program ideally suited for your business strategy and organizational needs? It’s a delicate balance that makes all the difference between profit and loss.

More and more sales leaders have turned to Compensating the Sales Force to help them discover problems in their present system and create a compensation program that works best for their needs. Now, in the second edition of this authoritative, jargon-free handbook, sales compensation guru David J. Cichelli brings you completely up to date on setting target pay, selecting the right performance measures, and establishing quotas. He supplies clear guidelines for building the right compensation plan for any type of firm, of any size, in any industry, and he offers step-by-step procedures for implementing each approach.

In Compensating the Sales Force, second edition, Cichelli has substantially expanded the book’s popular formula section, and he provides brandnew examples of:

  • Income producer plans
  • Sales rep commission plans
  • Bonus plans
  • Incentive plans
  • Base Salary management plans

The book also includes all-new chapters for global, complex sales organizations and hard-to-compensate sales jobs.

Using the lessons in Compensating the Sales Force, you’ll construct and calculate accurate formulas for payout purposes and establish highly efficient support programs, such as sales crediting and account assignment.

Complete with dozens of real-world examples that illustrate important points and demonstrate specific techniques and procedures, Compensating the Sales Force provides all the tools you need to design and implement a sales compensation plan that maximizes profits—and keeps them climbing.


Praise for the first edition of Compensating the Sales Force:

“If your company is refocusing its efforts on sales revenue enhancement, you must read this book. If you want motivated salespeople and superior sales results, act on its content.”
Noel Capon, R. C. Kopf Professor of International Marketing, Chair of Marketing Division, Graduate School of Business, Columbia University

“This book provides great guidance for any business leader who wants to capitalize on sales compensation as a tool for driving business results.”
Rick Justice, Executive Vice President, Worldwide Operations and Business Development, Cisco Systems

“Dave Cichelli is the premiere sales compensation educator today. You will immediately find this work informative, helpful, [and] thought-provoking.”
Mark Englizian, former Director of Global Compensation, Microsoft Corporation


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1 Why Sales Compensation?
2 Sales Compensation Fundamentals
3 Who Own Sales Compensation?
4 Why Job Content Drives Sales Compensation Design
5 Formula Types
6 Formula Construction
Territories Quotas and Crediting
8 Difficult to Compensate Sales Jobs
11 Administration
12 Implementation and Communication
13 Program Assessment
14 Sales Compensation Design
Closing Notes
Illustrative Sales Compensation Plan
Sales Compensation Surveys
Software VendorsSales Compensation Administration Software

9 Compensating the Complex Sales Organization
10 Global Sales Compensation

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About the author (2010)

About the Author
David J. Cichelli
is Senior Vice President of The Alexander Group. He is a national expert in sales compensation and is the Firm's sales compensation practice manager. He helps his clients develop field incentive plans that ensure alignment between corporate sales objectives and sales resources. David is a frequent speaker on sales effectiveness and sales compensation issues. He teaches sales effectiveness for Columbia University's Sales Management Program. David has been with The Alexander Group for over 20 years with clients that include leading companies from among most major industries including financial services, hi-tech, software, telecom, wholesale, consumer goods, healthcare, and many others.. His previous experience includes field sales support for an industrial chemical company and a sales compensation practice manager for a large human resources consulting firm. He is author of WorldatWork's one-day class on sales compensation. He is a contributing author to Sales and Marketing Magazine.

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