From the research that I have done, I believe that incentive programs are the smart way to go for most companies. As I showed with Mary Kay Cosmetics, they would not be the company that they are today if they did not use the type of incentive program they make available to all their consultants. Sales is a frustrating job and sales managers need to continue motivating their sales force in ways that will keep them striving to achieve success. They must keep their salespeople happy or the incentive program will fail. From the research that I have done I have come to this conclusion.
Cash incentives do work to motivate salespeople.
But non-cash incentives are showing that they may work better. A non-cash reward is put into the hands of the salesperson right away as with a cash reward they may put it aside or spend it on bills making the cash incentive less memorable over time on your sales force. References Aranda, Holly. Emporia Sales Director, with Mary Kay Cosmetics. Premium Incentive, Strategies for Success.