• Don’t set impossible quotas. Many managers automatically in- crease individual sales quotas ev- ery year so that salespeople have to book more business before they can earn incentive income. This is a common approach to keep- ing costs down, but it can have an adverse effect on sales because salespeople become discouraged by quotas which are impossible to reach and may leave the company for greener pastures. If selling costs are a real problem, it’s usually a bet- ter strategy to keep sales quotas re- alistic and offer lower commissions instead.
• Don’t limit income potential. Putting a ceiling on total sales commissions and bonuses tells salespeople that once they’ve reached the limit, there’s no reason for them to continue to work for additional sales.
• Don’t waste sales ability. Good salespeople need new challenges. Selling the same customers over an extended period may make it easier to reach their quotas, but they soon realize that increasing their sales (and their income) is becoming more and more difficult. It’s much better to reassign territories to pro- vide new opportunities for sales- people to improve their income.
