With the economy continuing its uncertain path, budgeting for sales incentive programs based on hard and fast rules is more important than ever. Without the right plan, you could be wasting money. There is a magic formula, so keep in mind these points.
Budget is relative.
It depends on the established compensation your sales team is receiving from competing product lines or other items in their portfolios. It is a good idea to stress performance - versus competition in sales or channel programs. Many times, this can be far more motivating than the rewards themselves. Understand the formula. Having the right budget is paramount to your program's success.