(Contributed by Gordon Daugherty, Capital Factory President)
Compensating a sales team is a tricky and sensitive endeavor that requires a lot of advanced planning. I previously wrote about my 5 Golden Rules of Sales Compensation. But even if you follow those rules you’ll need to decide about the underlying structure of the sales commission plan. And while there are almost infinite number of ways to compensate a sales team, most of them fall into two categories: absolute or relative. This blog post explains the fundamental differences between these two methods to help you decide which is best to use for your sales team.