At most successful companies, the top sales people are “well taken care off” from a compensation standpoint. Successful entrepreneurs  learn early on that great sales producers become the “goose that lays golden eggs” when properly incentive-“vized”. In my interactions with hundreds of companies over the last thirty years, I learned a few things about  the “DNA” that drives the best organization’s sales compensation philosophy. Organizational structure is certainly one aspect of success in sales, but there are many issues to consider. I have learned the most in my sales and business development career from what does not work.

Below are nine summary principles that produce excellent results:

1. As an entrepreneur you cannot ignore the sales function and your key sales people. Make it a daily priority to stay on top of who is selling and buying your product.

2. Salesmen amplify the best or the worst attributes of your company’s reputation. Hire with an eye on ambition, high aspirations, and drive rather than academic patina.

3. Logistics and sales are inextricably tied  (UPS or pizza delivery are good examples). Don’t think your logistical or customer support operations can be separated from your sales efforts. The best companies find a way to tie everything together to deliver a superior product on time.

4. If the key “rain-maker” is you, set a good example of consultative selling by taking the time to understand the customer’s need or problem rather than pushing your “canned product solution”

5. Subtle or major changes in your method of sales compensation have a profound impact on overall profitability.

6.. Try to practice open book accounting and transparency in your compensation practices

7. Levels of compensation are the salesperson’s method of keeping score and evaluating their own performance vi-a-vis everyone around them.

8. Keep your sales organization as “flat” as possible

9. Tie your compensation structure to your business fundamentals and “what really drives your business”