How to Make a Sales Incentive Plan That Actually Motivates Your Team

Most companies say they have a sales incentive plan. Very few have one that actually works.

What they really have is a commission structure and a few random bonuses thrown in when leadership panics about revenue.

A real incentive plan changes behavior. It tells reps what matters. It keeps them engaged when deals stall. And it pushes high performers to keep pushing instead of coasting.

If your incentive plan does not do that, it’s broken.

Let’s fix it.

First, Understand What Sales Incentives Are (And What They’re Not)

Sales incentives are rewards tied to specific actions and outcomes.

Not vague effort. Not “doing your best.” Clear actions. Clear results.

Book meetings.

Move deals forward.

Retain customers.

Expand accounts.

That’s it.

Incentives are not about dangling money in front of people and hoping they work harder. They are about focus. When incentives are clear, reps stop guessing what leadership wants and start executing.

And yes, money matters. But money alone is lazy thinking.

Why Most Sales Incentive Plans Fail

Here’s the uncomfortable truth.

Most incentive plans fail because:

• Goals are unrealistic

• Only closers are rewarded

• Support roles are ignored

• Tracking is messy and disputed

• Everything depends on closed revenue only

Sales today is not one person closing one deal.

It’s SDRs qualifying. Account executives running deals. Sales engineers supporting demos. Account managers retaining customers. Marketing warming leads. Automation doing follow-ups.

If your incentive plan only rewards the last step, you are motivating the wrong behavior.

Step 1: Align Incentives With How Sales Actually Happens

Role-Based Incentives Are Non-Negotiable

Not everyone should be rewarded the same way.

SDRs live and die by volume and quality. Reward:

• Qualified meetings

• Sales-accepted leads

• Pipeline created

Account executives carry revenue. Reward:

• Deal progression

• Win rate

• Revenue closed

Account managers protect and grow revenue. Reward:

• Retention

• Expansion

• Upsells

Sales engineers and solution architects support wins. Reward:

• Team performance

• Deal success

• Win rates they influenced

When everyone knows how they win, collaboration increases and politics disappear.

Step 2: Adjust Incentives by Territory and Market Reality

All territories are not equal. Pretending they are is lazy management.

New markets need:

• New logos

• First conversations

• Early pipeline

Mature markets need:

• Retention

• Account expansion

• Deeper relationships

Your incentive plan should reflect this reality. Otherwise, reps in tough territories burn out while others cruise.

Step 3: Handle Team Deals With Split Incentives

Big deals are team efforts.

But nothing kills morale faster than one person doing most of the work while everyone gets paid the same.

Split incentives solve this by rewarding contribution, not presence.

This only works if activities are tracked automatically and objectively. If reps have to argue about who did what, you already lost.

Step 4: Incentivize Progress, Not Just Closures

Long sales cycles drain motivation.

If reps only get rewarded at the end, they disengage halfway through.

Reward milestones:

• Opportunity created

• Demo completed

• Proposal sent

• Procurement cleared

Small rewards keep momentum alive. Big rewards still come at close.

This keeps deals moving instead of stalling.

Step 5: Incentivize Omnichannel Selling

Sales doesn’t happen on one channel anymore.

Your reps sell through:

• Email

• Calls

• WhatsApp

• LinkedIn

• Meetings

If incentives only track calls or deals, reps will ignore the rest.

Reward engagement across channels. Otherwise, you are training your team to sell poorly.

Step 6: Use Data, Not Gut Feelings

Guess-based targets kill trust.

Modern incentive plans use real data to:

• Set achievable targets

• Identify bottlenecks

• Reward improvement, not luck

Instead of “sell 10 percent more,” incentivize:

• Faster deal velocity

• Higher conversion rates

• Better pipeline coverage

Reps push harder when goals make sense.

Creative Incentive Ideas That Actually Motivate

Gamified Leaderboards

Points for activities, not just deals. Add multipliers for streaks. Even average reps stay engaged.

Short-Term SPIFs

One to four week incentive pushes. Immediate rewards. High urgency. No long explanations.

Team-Based Targets

Shared goals with minimum individual thresholds. Collaboration without freeloading.

Experience-Based Rewards

Trips beat cash. Always. Experiences last longer in people’s heads.

Manager and Rep Rewards Together

If managers win when teams win, coaching improves fast.

Choice-Based Rewards

Let reps choose their rewards. People value what they choose.

Monetary vs Non-Monetary Incentives

Money is powerful. It’s also forgettable.

Cash works best for:

• Short-term pushes

• Clear performance jumps

Non-monetary rewards work best for:

• Long-term motivation

• Culture

• Retention

The best incentive plans combine both and rotate rewards often.

Rules You Should Not Break

• Ask reps what motivates them. Don’t assume.

• Keep goals clear and achievable.

• Make progress visible to everyone.

• Allow multiple winners.

• Never cap earnings.

• Budget realistically and measure ROI.

If your incentive plan does not pay for itself, fix it or kill it.

Automate Incentives or Expect Problems

Manual tracking leads to:

• Disputes

• Delays

• Distrust

Modern teams automate incentives so reps can focus on selling.

This is where Trembi fits naturally.

Trembi brings sales activity, engagement across channels, pipeline data, and performance tracking into one system. Reps see progress in real time. Managers launch incentive programs without spreadsheets. Performance becomes visible and fair.

When incentives are transparent and automated, motivation stops being a problem.

Final Take

A sales incentive plan is not a document you write once a year.

It’s a living system.

If it’s clear, fair, visible, and automated, it drives results. If it’s vague and manual, it creates frustration.

Build incentives around real selling behavior. Support them with the right tools. Then let your team do what they do best.