Sales compensation refers to the financial rewards given to sales employees for their performance in selling products or services. This compensation can include a base salary, commissions based on sales made, bonuses for achieving targets, and other incentives. The goal is to motivate sales staff to increase their productivity and drive revenue for the company. A well-structured sales compensation plan aligns the interests of the sales team with the company's objectives. It helps attract and retain talented salespeople while ensuring they are rewarded fairly for their contributions. Effective plans are often tailored to different roles and market conditions to maximize effectiveness.