{"id":1819,"date":"2025-02-07T07:15:45","date_gmt":"2025-02-07T07:15:45","guid":{"rendered":"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/"},"modified":"2025-12-02T10:08:01","modified_gmt":"2025-12-02T10:08:01","slug":"sales-incentive-vs-sales-commission","status":"publish","type":"post","link":"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/","title":{"rendered":"Sales Incentives vs Sales Commission"},"content":{"rendered":"<div class=\" has-content-align-left has-overlay has-overlay--dark alignwide wp-block-biw-block-theme-hero\">\n\t<div class=\"biw-hero__grid\">\n\t\t\t\t\t<div class=\"biw-hero__breadcrumbs\">\n\t\t\t\t<div id=\"breadcrumbs\" class=\"breadcrumb-nav__wrapper\"><span class=\"breadcrumb-nav\"><span><a href=\"https:\/\/www.biworldwide.com\/eu\/\">Home<\/a><\/span><\/span><\/div>\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"biw-hero__media has-dynamic-border-radius\">\n\t\t\t\t\t\t\t\t\t<div class=\"biw-hero__overlay overlay-dark\"><\/div>\n\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.biworldwide.com\/eu\/wp-content\/uploads\/sites\/16\/2024\/06\/shutterstock_509087437-scaled.jpg\" alt=\"\" class=\"biw-hero__bg-image\" style=\"object-position: 48% 24%;\">\t\t\t<\/div>\n\t\t\t\t<div class=\"biw-hero__content\">\n\t\t\t\t\t\t<h1 class=\"biw-hero__title\" style=\"line-height: 1.2\">\n\t\t\t\tSales Incentives vs Sales Commission\t\t\t<\/h1>\n\t\t\t\t\t\t\t\t\t\t<div class=\"biw-hero__text\">\n\t\t\t\t\t\n\n<p>Learn about the roles that commission (often part of a compensation package) and sales incentives (often non-financial benefits) play in the workplace.<br><\/p>\n\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<p>Imagine a world where your sales team isn&#8217;t just meeting targets but consistently exceeding them. What if the secret lies in the perfect blend of sales commissions and incentives?<br><br>When considering what attracts an employee to a new employer, it&#8217;s essential to understand the distinct roles that compensation and sales incentives play. Compensation, which ensures fair payment for the work performed, is often what initially draws a person to a role. In contrast, <a href=\"https:\/\/www.biworldwide.com\/eu\/contests-and-incentives\/\">sales incentives<\/a> are what keep employees motivated, engaged, and striving for continuous improvement.<br><br>This blog delves into the different roles that commission (often seen as part of a compensation package) and <a href=\"https:\/\/www.biworldwide.com\/eu\/sales-team-motivation\/\">sales incentives<\/a> (the additional, often non-financial benefits received as part of a performance-based initiative) play in the workplace.<\/p>\n\n\n\n<p>In this blog we&#8217;ll explore key questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What is sales commission?<\/li>\n\n\n\n<li>How does sales commission work?&nbsp;<\/li>\n\n\n\n<li>What is a sales incentive?<\/li>\n\n\n\n<li>The key differences between sales commission and sales incentives<\/li>\n\n\n\n<li>Are commissions and sales incentives seen as a benefit or salary top-up?<\/li>\n\n\n\n<li>What sales incentive rewards are most effective and why?<br><br><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">What&#8217;s sales commission?<\/h2>\n\n\n\n<p><strong><br><\/strong><strong>Sales commission is a form of compensation paid to sales employees based on the sales they generate. Typically, it is additional income on top of a base salary, designed to motivate salespeople to achieve higher sales targets.&nbsp;<\/strong><\/p>\n\n\n\n<p>This method of rewarding individuals is private and usually satisfies only the basic needs of an employee.<\/p>\n\n\n\n<p>A well-structured sales commission plan positively influences a company&#8217;s profitability by keeping the sales team motivated to sell more as they feel they have a stake in the business. However, it doesn&#8217;t always have a significant impact on reinforcing performance levels.<\/p>\n\n\n\n<p>Some jobs are purely based on sales commission, such as taxi drivers, where there&#8217;s no base salary, only commission. However, earning income this way doesn&#8217;t always yield the anticipated outcomes. For instance, George Loewenstein\u2019s paper \u201cThe Labor Supply of New York City Taxi Drivers\u201d demonstrates that, contrary to rational expectations, most drivers quit work early on high-earning days, like rainy days, once they reach their average daily wage, rather than working a full shift to earn more.<\/p>\n\n\n\n<p>While a few top performers take advantage of such opportunities, most drivers rationalise their decision with thoughts like, \u201cI can spend more time with the kids today\u201d or \u201cI&#8217;ll take time to replace the old sink today.\u201d This shows that commission-only models aren&#8217;t always beneficial for the majority of the salesforce and should be considered carefully before being introduced.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How does commission work in sales?<\/h3>\n\n\n\n<p><br>Commission structures can vary widely depending on the organisation and industry. Common structures include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Straight commission<\/strong>: Salespeople earn only commission with no base salary. This is one of the most unpopular types of commission structures as it doesn&#8217;t provide the sales team with any guaranteed income. This is often used by companies or startups who don&#8217;t have much capital or for high performing salespeople for whom a base salary isn&#8217;t required.<br><br><\/li>\n\n\n\n<li><strong>Tiered commission<\/strong>: This type of sales commission plan is designed to encourage salespeople to surpass their initial sales targets, rewarding them with higher commissions when they do.&nbsp;<br><br><\/li>\n\n\n\n<li><strong>Revenue commission plan<\/strong>: This type of commission plan is regularly used by companies that are goal oriented and that sell products with fixed unit prices. This type of offer means that employees are offered a pre-determined commission rate in addition to their standard salary no matter the size of the deals closed.&nbsp;<br><br><\/li>\n\n\n\n<li><strong>Gross margin commission structure<\/strong>: This is a subtle variation of the revenue commission plan. In this structure, the sales team are entitled to an agreed commission rate but instead of receiving a percentage of the sales price, commission is calculated using a percentage of the profit after deducting the overhead cost incurred by the sale. This is a good way of ensuring salespeople are focused on sales that are profitable for the business.<br><br><\/li>\n\n\n\n<li><strong>Draw against commission<\/strong>: In this model, companies offer the sales team a guaranteed amount of commission every month irrespective of the number of sales they make. This is done in the belief that the salesperson will, in the future, make more sales to cover the draw in sales commission. When this happens, the draw will be deducted from the pre-paid commission.<\/li>\n<\/ul>\n\n\n\n<p>These structures are designed to incentivise salespeople to increase their sales efforts, directly linking their earnings to their performance.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.biworldwide.com\/eu\/contact-us\/\"><strong>Find the Right Sales Incentive Structure for your Business<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">What&#8217;s a sales incentive?<\/h2>\n\n\n\n<p><strong><br><\/strong><strong>Sales incentives are rewards given to salespeople for achieving specific performance goals. Unlike commissions, which are typically monetary, sales incentives can be both financial and non-financial.&nbsp;<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/how-to-design-smart-incentives\/\">Sales incentive programmes<\/a> are built on the premise that people can be motivated extrinsically, now a fact proven in both academic environments and in industrial studies. Participants will improve their performance or do more to earn a desirable award.&nbsp;&nbsp;<\/p>\n\n\n\n<p>There are many <a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/sales-incentive-structures-that-work\/\">different types of sales incentive<\/a> but here are the four most common:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Role-specific sales incentive: <\/strong>Different roles have different levels of responsibility and therefore should have role specific incentives attached. This type of incentive is tied directly to the role with targets being set by a manager who determines an appropriate level of achievement to be linked to the sales incentive.<br><br><\/li>\n\n\n\n<li><strong>Split sales incentive:<\/strong> Where you have multiple salespeople working on the same sale, sometimes from different geographies or different departments, a manager will determine the amount of sales incentive to be attributed to each salesperson.<br><br><\/li>\n\n\n\n<li><strong>Pre-sales incentives:<\/strong> In organisations where sales cycles are longer, pre-sales incentives help to keep a sales team motivated and focused on the steps to sale.<br><br><\/li>\n\n\n\n<li><strong>Omnichannel sales incentives:<\/strong> In recognition of the fact that the world is changing, and customers today don\u2019t just make purchases in-person, omni-channel sales incentives recognise the multiple touchpoints that support a sale.<\/li>\n<\/ul>\n\n\n\n<p>Sales incentives work by motivating sales teams to meet or exceed their targets. They can be tailored to individual or team performance and are often used to drive specific behaviours, such as closing more deals or improving customer satisfaction, and can be introduced alongside commission-based incentives They have a dual benefit of also improving overall company performance and increased sales.<\/p>\n\n\n\n<p>By understanding and effectively implementing both sales commissions and sales incentives, businesses can create a motivated, high-performing sales team that drives growth and success.<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">The key differences between sales commissions and sales incentives<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><\/th><th><strong>Sales incentives<\/strong><\/th><th><strong>Sales commissions<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Definition<\/strong><\/td><td>Rewards given for achieving specific targets or behaviours<\/td><td>Earnings based on a percentage of sales made<\/td><\/tr><tr><td><strong>Purpose<\/strong><\/td><td>Motivate specific actions or behaviours<\/td><td>Directly reward sales performance<\/td><\/tr><tr><td><strong>Frequency<\/strong><\/td><td>Often one-time or periodic<\/td><td>Ongoing, tied to each sale<\/td><\/tr><tr><td><strong>Calculation basis<\/strong><\/td><td>Based on achieving set goals or milestones<\/td><td>Percentage of sales revenue<\/td><\/tr><tr><td><strong>Flexibility<\/strong><\/td><td>Can vary widely in form and criteria<\/td><td>Generally consistent percentage of sales<\/td><\/tr><tr><td><strong>Examples<\/strong><\/td><td>Bonuses, trips, gifts, recognition awards<\/td><td>Percentage of sales revenue, tiered commission rates<\/td><\/tr><tr><td><strong>Impact on salary<\/strong><\/td><td>Often supplementary, not part of base salary<\/td><td>Integral part of total earnings<\/td><\/tr><tr><td><strong>Focus<\/strong><\/td><td>Broader performance metrics<\/td><td>Purely sales-focused<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is sales commission viewed as a benefit?<\/h3>\n\n\n\n<p><strong><br>Sales commission is generally viewed as salary top-up rather than a benefit <\/strong>and is typically an integral part of a salesperson&#8217;s compensation package, designed to enhance their earnings based on their performance. However, consideration also needs to be given to sales professionals who don&#8217;t hit their targets as this will mean a reduced commission from sales and therefore a lower annual remuneration package.&nbsp;<\/p>\n\n\n\n<p>The amount of commission it&#8217;s possible to earn can rely on several different factors including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Experience level of the salesperson<\/li>\n\n\n\n<li>The product you&#8217;re selling<\/li>\n\n\n\n<li>The industry that you&#8217;re operating in<\/li>\n\n\n\n<li>The frequency of selling<\/li>\n\n\n\n<li>The buying cycles of your customers<\/li>\n\n\n\n<li>Macro-economical factors<\/li>\n<\/ul>\n\n\n\n<p>Sales commissions provide a direct financial incentive to boost sales but can result in a fluctuating pay cheque and over reliance can lead to increased employee stress and potentially higher turnover rates.<br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Are sales incentives viewed as a benefit?<\/h3>\n\n\n\n<p><strong><br>Yes, sales incentives are often viewed as benefits.<\/strong> They&#8217;re additional rewards that go beyond regular compensation, designed to recognise and motivate exceptional performance. These incentives can significantly enhance job satisfaction and loyalty among sales teams and help to tie performance back into company goals. The <a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/financial-vs-non-financial-incentives\/\">most effective sales incentives are typically non-financial<\/a> as they can <a href=\"https:\/\/www.biworldwide.com\/eu\/goalquest-ai\/\">offer more flexibility in terms of personalisation<\/a> and, as a result, are more able to tap into intrinsic motivators, such as the desire for recognition and personal growth.&nbsp;<\/p>\n\n\n\n<p>Examples of non-financial sales incentives include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Public or private recognition<\/li>\n\n\n\n<li>Time off<\/li>\n\n\n\n<li>Wellness gifts such as spa days and access to wellness platforms<\/li>\n\n\n\n<li>Learning and development opportunities to further enhance career opportunities<\/li>\n\n\n\n<li>Luxury merchandise gifts such as the latest tech gadgets<\/li>\n\n\n\n<li>Experiences such as luxury travel and dining<\/li>\n\n\n\n<li>Mentorship programmes<\/li>\n<\/ul>\n\n\n\n<p>Well designed, non-financial sales incentives can boost a sense of belonging and purpose for a sales team and provide the business with a motivated and positive workforce.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.biworldwide.com\/eu\/contact-us\/\"><strong><strong>Test our Sales Incentive Programmes in your Workplace<\/strong><\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">What are the most effective sales incentive rewards?<\/h2>\n\n\n\n<p><br>As humans we&#8217;re typically bad at understanding what truly motivates us. When we&#8217;re asked the direct question, \u2018<a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/webinar\/is-cash-king\/\">Would you like a cash reward<\/a>?\u2019 our automatic response is most likely to be \u201cyes\u201d. This is true around the world. Studies by Ed Deiner from the University of Illinois have concluded that <a href=\"https:\/\/labs.psychology.illinois.edu\/~ediener\/Documents\/Diener-Seligman_2004.pdf\">the desire for more money exists among both the poorest and the richest people<\/a> on the planet. However, if we&#8217;re not presented with the choice but instead rewarded for our performance with a luxury experience, research such as that by <a href=\"https:\/\/theirf.org\/wp-content\/uploads\/2010\/01\/benefits-of-tangible-non-monetary-incentives.pdf\">Scott Jeffrey<\/a> and <a href=\"https:\/\/www.researchgate.net\/profile\/Hal-Arkes\/publication\/223828603_Preference_reversals_in_evaluations_of_cash_versus_non-cash_incentives\/links\/5ad4dd1f0f7e9b285936a706\/Preference-reversals-in-evaluations-of-cash-versus-non-cash-incentives.pdf\">Victoria Schaffer<\/a> shows that our motivation increases, it\u2019s called preference reversal.&nbsp;<\/p>\n\n\n\n<p>All incentive programmes are built on the premise that people can be motivated extrinsically.&nbsp;<\/p>\n\n\n\n<p>But what <a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/employee-engagement\/how-do-rewards-impact-employee-performance\/\">rewards are best to positively impact performance<\/a>?<\/p>\n\n\n\n<p><strong>Hedonic rewards<\/strong> \u2013 these rewards have a high emotional value. They can be expressed as travel, <a href=\"https:\/\/www.biworldwide.com\/eu\/experiences-marketplace\/\">experiences<\/a> or <a href=\"https:\/\/www.biworldwide.com\/eu\/merchandise-marketplace\/\">merchandise rewards<\/a>.<\/p>\n\n\n\n<p><strong>Luxurious rewards<\/strong> \u2013 a luxurious reward can be described as something that you want rather than need. Whats considered a luxury will vary from person to person depending on circumstances.<\/p>\n\n\n\n<p><strong>Social rewards<\/strong> \u2013 things that can be discussed and shared in social circles often carry more value. Whilst it\u2019s often considered inappropriate to talk about pay cheques, incentives such as a luxury trip are more likely to be talked about and therefore<a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/how-to-calculate-value-of-sales-incentives\/\"> gains additional value<\/a>.<\/p>\n\n\n\n<p><strong>Re-consumptive rewards<\/strong> \u2013 rewards that can be re-consumed, such as every time you turn on the TV that you were awarded or sharing photographs of a trip that you earned, are likely to <a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/How-is-Emotion-the-Key-to-Motivating-Your-Sales-Team\/\">carry a higher emotional value<\/a> and be linked back to your employer.<\/p>\n\n\n\n<p><strong>Wants versus needs<\/strong> \u2013 needs are defined as the things that we need to do such as paying the mortgage or buying groceries. If there&#8217;s money left over this can be spent on wants \u2013 the luxuries. However, if you&#8217;re rewarded with a want, we can enjoy it in a different way to being rewarded with cash which is more closely aligned to need.<\/p>\n\n\n\n<h2 class=\"wp-block-heading  has-gradient-fill has-gradient-fill-orange\">Testing different sales incentive types in the workplace<\/h2>\n\n\n\n<p><br>Testing different <a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/sales-incentive-structures-that-work\/\">types of sales incentives<\/a> can be highly beneficial for organisations looking to optimise employee performance and boost revenue. By understanding what motivates employees, organisations can tailor their incentive programmes to achieve the best results.<\/p>\n\n\n\n<p>A global telecommunications firm conducted a study with support from BI WORLDWIDE to increase sales within its call centre division, which had been experiencing a decline in revenue. The study aimed to test the impact of various incentives on employee performance. Employees were divided into groups with either merchandise (non-cash) or cash rewards, and goals were either self-selected or assigned. A control group received no additional incentives.<\/p>\n\n\n\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"is-style-intro-large-text has-contrast-color has-text-color has-link-color wp-elements-e88063e66940a8b848f5eb0986880ffd is-style-intro-large-text--1\"><strong>Key results:<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group  has-responsive-items-per-row has-desktop-5-per-row has-laptop-3-per-row has-tablet-2-per-row has-mobile-1-per-row has-block-gap-50 is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-480b0c67 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-group  layout-columns-10 has-global-padding is-layout-constrained wp-container-core-group-is-layout-0b5f5b40 wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-text-align-center is-nowrap is-layout-flex wp-container-core-group-is-layout-0999c970 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-group wp-container-content-69bc4bdf is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-81423f52 wp-block-group-is-layout-flex\">\n<p class=\"has-accent-orange-dark-color has-text-color has-link-color has-xxxl-font-size wp-elements-c56cb432351912a0671b45dee63a4a4c\"><strong>-4%<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center  has-text-wrap-balance\">decline in sales for the control group<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group wp-container-content-69bc4bdf is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-81423f52 wp-block-group-is-layout-flex\">\n<p class=\"has-accent-green-color has-text-color has-link-color has-xxxl-font-size wp-elements-55070b120e2e905a0e1909d6f0e3a9aa\"><strong>+87%<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center  has-text-wrap-balance\">increase in sales for the group with <strong>merchandise rewards and self-selected goals<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-81423f52 wp-block-group-is-layout-flex\">\n<p class=\"has-accent-green-color has-text-color has-link-color has-xxxl-font-size wp-elements-f2529eb7a7f332aade4a69cb8de09bf7\"><strong>+13%<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center  has-text-wrap-balance\">increase in sales for group with <strong>merchandise rewards and assigned goals<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-81423f52 wp-block-group-is-layout-flex\">\n<p class=\"has-accent-orange-dark-color has-text-color has-link-color has-xxxl-font-size wp-elements-45b9e5dbfef7b3a1c6cf208ae8ba47ef\"><strong>-3%<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center  has-text-wrap-balance\">decrease in sales for group with <strong>cash rewards and self-selected goals<\/strong><\/p>\n\n\n\n<p><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-81423f52 wp-block-group-is-layout-flex\">\n<p class=\"has-accent-orange-dark-color has-text-color has-link-color has-xxxl-font-size wp-elements-06ca4eff81f768b2ac52c0b38c435b33\"><strong>-35%<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center  has-text-wrap-balance\">decrease in sales for group with <strong>cash rewards and assigned goals<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<p>The study concluded that non-cash rewards were more motivating than cash, and giving employees ownership over their goals significantly improved their performance. This highlights the importance of understanding employee motivation and tapping into what they truly want, rather than what they think they need, to effectively drive behaviour change and performance.<br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Boost your bottom line with tailored sales incentives<\/h3>\n\n\n\n<p><br>Both sales commissions and sales incentives play pivotal roles in driving sales performance, sales team engagement, and overall business success. While commissions provide a direct financial reward for sales achievements, incentives offer a broader range of motivational benefits that can enhance job satisfaction and loyalty. By strategically combining these elements, businesses can create a dynamic and motivated sales force that&#8217;s aligned with their goals.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Ready to take your sales team&#8217;s performance to the next level?<\/h2>\n\n\n\n<p>Let&#8217;s discuss how <a href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-channel\/what-is-sales-incentive-management\/\">managed, tailored sales incentives<\/a> can drive your business growth.<\/p>\n\n\n\n<div class=\"wp-block-group  layout-columns-10 has-global-padding is-layout-constrained wp-container-core-group-is-layout-0b5f5b40 wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-base-two-background-color has-background  has-dynamic-border-radius  layout-columns-4 has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-645d8aa7 wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--60);padding-right:var(--wp--preset--spacing--60);padding-bottom:var(--wp--preset--spacing--60);padding-left:var(--wp--preset--spacing--60);background-image:url(&#039;https:\/\/www.biworldwide.com\/eu\/wp-content\/uploads\/sites\/16\/2025\/03\/CTA1.png&#039;);background-position:50% 50%;background-size:cover;\">\n<p class=\"is-style-default has-xxl-font-size is-style-default\" style=\"line-height:1.3\"><strong>Let&#8217;s talk.<\/strong><\/p>\n\n\n\n<p><strong>Get in touch with us today to explore innovative sales incentive solutions that can transform your sales strategy and boost your bottom line.&nbsp;<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-secondary-fill\"><a aria-controls=\"modal-header-lead-gen\" aria-haspopup=\"dialog\" href=\"#\" modal-id=\"header-lead-gen\" role=\"button\" tabindex=\"0\" class=\"wp-block-button__link wp-element-button modal-trigger core-button-trigger\">Get in touch<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When considering what attracts an employee to a new employer, it&#8217;s essential to understand the distinct roles that compensation and sales incentives play. Compensation, which ensures fair payment for the work performed, is often what initially draws a person to a role. In contrast, sales incentives are what keep employees motivated, engaged, and striving for continuous improvement.<\/p>\n","protected":false},"author":18,"featured_media":1820,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"associated_experts":[],"featured_image_focal_point":{"x":0.5,"y":0.5},"footnotes":""},"content-topic":[43],"problem-space":[52],"wf_post_folders":[],"class_list":["post-1819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","content-topic-incentives-and-rewards","problem-space-sales-team-motivation"],"featured_media_global":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sales Incentives vs Sales Commission<\/title>\n<meta name=\"description\" content=\"Learn about the roles that commission (often part of a compensation package) &amp; sales incentives (often non-financial benefits) play in the workplace.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sales Incentives vs Sales Commission\" \/>\n<meta property=\"og:description\" content=\"Learn about the roles that commission (often part of a compensation package) &amp; sales incentives (often non-financial benefits) play in the workplace.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/\" \/>\n<meta property=\"og:site_name\" content=\"Europe\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-07T07:15:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-02T10:08:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.biworldwide.com\/eu\/wp-content\/uploads\/sites\/18\/2025\/03\/shutterstock_509087437-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"BI WORLDWIDE\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"BI WORLDWIDE\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"10 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/\",\"url\":\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/\",\"name\":\"Sales Incentives vs Sales Commission\",\"isPartOf\":{\"@id\":\"https:\/\/www.biworldwide.com\/eu\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.biworldwide.com\/eu\/wp-content\/uploads\/sites\/18\/2025\/03\/shutterstock_509087437-scaled-1.jpg\",\"datePublished\":\"2025-02-07T07:15:45+00:00\",\"dateModified\":\"2025-12-02T10:08:01+00:00\",\"author\":{\"@id\":\"https:\/\/www.biworldwide.com\/eu\/#\/schema\/person\/ee01b78a83a8949a9701cfa9826151a6\"},\"description\":\"Learn about the roles that commission (often part of a compensation package) & sales incentives (often non-financial benefits) play in the workplace.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.biworldwide.com\/eu\/our-work\/blog\/sales-incentive-vs-sales-commission\/#primaryimage\",\"url\":\"https:\/\/www.biworldwide.com\/eu\/wp-content\/uploads\/sites\/18\/2025\/03\/shutterstock_509087437-scaled-1.jpg\",\"contentUrl\":\"https:\/\/www.biworldwide.com\/eu\/wp-content\/uploads\/sites\/18\/2025\/03\/shutterstock_509087437-scaled-1.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"Man in a suit sits in an orange chair, smiling while holding a laptop in a modern office. 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