Sales Impact Drives Sales Pay

By Culpepper and Associates

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Setting incentive sales pay levels often provokes heated debates. Most agree that the greater impact an individual has on generating sales, the higher the incentive awarded.

What is not so easily agreed upon is:
  • Who besides the sales reps and their management significantly impacts sales?
  • How can their contribution best be measured and quantified?


    • As difficulty increases in directly measuring contribution, incentive amount generally decreases. Table 1 displays how 400+ technology firms in our Sales Pay database approach this issue.

    Specifically, the table provides:
    1. The percent of incumbents in the positions eligible to receive incentive pay.
    2. The size of the incentive opportunity at 100% of performance, expressed as a percentage of the individual's base salary.

    Table 1: Incentive Eligibility and Amount

    Job Code and Title

    Percent of Incumbents Eligible

    Avg Target  Incentive as a Percent of Base

    Sales Management with Revenue Responsibility

    5101-5415: Field Sales & Field Operations Management

    100%

    89%

    5601-5660: Telesales/Internet Sales Management

    100%

    77%

    5801-5860: Inside Sales Management

    100%

    71%

    Sales Reps with Revenue Responsibility

    5540-5555: Field Sales Rep (>$2.2 Million per Year)

    100%

    130%

    5520-5535: Field Sales Rep (>$1.2 and <$2.2 Million per Year)

    100%

    126%

    5505-5515: Field Sales Rep ( Up to $1.2 Million per Year)

    100%

    104%

    5720-5745: Telesales/Internet Sales Rep (>$1.2 Million per Year)

    100%

    114%

    5703-5715: Telesales/Internet Sales Rep (Up to $1.2 Million per Year)

    99%

    104%

    5921-5955: Inside Sales Rep (>$1.2 Million per Year)

    100%

    85%

    5903-5915: Inside Sales Rep (Up to $1.2 Million per Year)

    100%

    84%

    Positions without Direct Revenue Responsibility but High Client Involvement

    5982:         Business Development Manager

    83%

    51%

    5986-5989: Business Development Reps

    93%

    43%

    6010-6012: Pre-Sales Technical Support Management

    94%

    37%

    6014-6019: Pre-Sales Technical Support Reps

    88%

    31%

    Positions providing Support to Sales Functions

    6716-6718: Proposal Analysts

    59%

    20%

    6912-6919: Sales Planners

    63%

    17%

    6812-6817: Contract Administrators

    69%

    10%

    6936:         Sales Trainer

    75%

    6%

    6922-6929: Order Processors

    51%

    9%

    6946-6949: Administrative Assistants-Sales

    47%

    6%

    Source: The Culpepper Compensation Survey database as of 5/1/2003.


    Responsibility for closing the sale and level of client interaction drive incentive eligibility and amount. Field sales employees who close sales and interact directly with clients show correspondingly high levels of incentive eligibility and incentive pay. Order processors and sales admins -- who rarely interact with clients or close sales -- are less likely to receive incentives and incentive amounts are lower.

    Note:Salaries, incentives and full job descriptions for the above positions are available in the Sales Pay area of the Culpepper Compensation Survey.
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