7 years ago
February 21, 2017

5 Benefits of a Sales Incentive Program

Here are 5 benefits of incorporating a sales incentive program into the culture and processes of your business.

Rhys Metler

The use of incentives is nothing new. Parents and school teachers use incentives all the time to get kids to do their homework and clean their bedrooms. Governments use incentives to promote certain behaviors or industries. And certainly, employers use incentives to motivate their employees and recognize exemplary work. 

The advantages of sales incentive programs are many, and you can begin enjoying these advantages as soon as you have your program up and running. Here are 5 benefits of incorporating a sales incentive program into the culture and processes of your business.


The first and most obvious benefit of a sales incentive program is motivation. If your sales reps have seemed unmotivated in the past, a sales incentive program can jump start them and help them to achieve the kind of success that has eluded them previously. When you present your sales motivation program, be very clear about goals and the specific rewards that accompany the achievement of those goals. The incentives don’t have to be cash bonuses; they could also be extra paid vacation days or even gift items. Whatever you offer, make sure your sales reps understand the direct association between goals and rewards.

Growing Bottom Line

With highly motivated employees, you’re likely to see an increase in earnings for the entire company. Companies that offer a sales incentive program generally see a rise in their bottom lines that is in direct proportion to the sales generated by their employees. In a sense, incentive plans can be self-supporting because increased earnings for the company can help to compensate employees for superior performance.

Increased Loyalty

As employees work harder to earn incentives, they are more likely to become loyal to the company they represent. This is especially true if you give your employees incentives for up-selling or for renewing yearly contracts with customers. If your sales incentive program is structured this way, your sales reps’ loyalty to your company increases over the years. This loyalty is a benefit both to your company and to your customers who can enjoy great customer service and long-term business relationships with your sales reps when your reps are loyal to your products and services.

Reduced Turnover

The number one reason sales reps look for new jobs is because they feel unappreciated and under-compensated in their positions. When you have an enticing sales incentive program, however, your sales reps will draw the correlation between their increased effort and their compensation and recognition. With a solid sales incentive program, your best sales reps will be compensated the most, and these will be the sales reps that will stay with you for years.

An Edge in Hiring

Great sales reps have their pick of companies to choose from, and if you offer an attractive sales incentive program, you’ll be more likely to entice these successful sales reps. If, during the hiring process, you find that some people would rather be paid a flat rate than participate in a sales incentive program, you can be sure that these people are not very motivated and don’t have a lot of confidence in their selling skills. Those who are already confident and successful sales people will love to be a part of your sales incentive program because it means they’ll have more room for growth and achievement.

As you can see, there are many attractive benefits to using a sales incentive program in your company. Not only can a sales incentive program motivate your sales reps and help you to make more sales, but it can also increase loyalty, reduce turnover, and give you an edge in hiring. 


Rhys Metler

Rhys is a tenacious, top performing Senior Sales Recruiter with 15+ years of focused experience in the Digital Media, Mobile, Software, Technology and B2B verticals. He has a successful track record of headhunting top performing sales candidates for some of the most exciting brands in North America. He is a Certified Recruitment Specialist (CRS) and has expert experience in prospecting new business, client retention/renewals and managing top performing sales and recruitment teams. Rhys enjoys spending quality time with his wife, son, and daughters, BBQing on a hot summer day and tropical vacations.