How to structure sales incentives
Tired of sales incentives that fall flat?
Discover how to structure a sales incentive programme that motivates your team, drives performance, and delivers ROI—without the guesswork. From milestone rewards to self-selected goals, this guide has you covered.
A well-designed sales incentive structure isn’t just a nice-to-have—it’s the engine behind a high-performing sales team. It sets the framework for what’s rewarded, how it’s earned, and how it’s delivered. But here’s the thing: one size never fits all. Even businesses in the same industry face different challenges, goals, and team dynamics. That’s why your sales incentive plan needs to be as tailored as your sales strategy.
In this guide, we’ll walk you through the essential components of an effective sales incentive structure, with a practical checklist to make sure nothing slips through the cracks. You’ll also find expert tips to help you maximise engagement and ROI, whether you’re aiming to boost peak period sales, retain top talent, or simply drive more consistent performance.
We’ll also explore how incentive structures flex depending on your business model—because what works for a fast-paced SaaS team won’t necessarily suit a field-based B2B salesforce.
Ready to build a sales incentive programme that not only motivates but actually moves the needle?
Understanding sales incentive structures
A sales incentive structure is a key component of any sales incentive plan and provides a strategic framework covering the types of incentives offered, the criteria for earning them, and the methods of distribution.
Structuring sales incentives for organisations with a global footprint adds an extra layer of complexity, as cultural differences and regional preferences must be considered.
Structuring a sales incentive programme for your business
One size does not fit all, especially when it comes to sales incentives. Even within industry verticals, whilst challenges may be similar, each business will present unique circumstances that will influence what sales incentive structures you should apply.
Different incentive programmes are needed for different industries. Here are a few examples of how the structure of a sales incentive plan changes depending on the business type and goals:
Sales incentive structures to motivate in complex sales cycles
Incentivise milestones
How it works:
Long and complex sales cycles can test even the most driven salespeople. When the reward is months away, motivation can fade. A smarter approach? Reward progress, not just the finish line. By incentivising key milestones—like qualifying leads, securing meetings, or advancing deal stages—you keep energy high and momentum rolling.
Example:
A salesperson might earn recognition or tiered rewards for moving a deal from discovery to proposal, or for hitting a set number of strategic touchpoints. This taps into goal gradient theory—we naturally push harder as we get closer to a goal. And by offering smaller, immediate rewards along the way, we counter hyperbolic discounting—our tendency to undervalue distant outcomes.
Benefits:
Breaking the journey into smaller, winnable steps (a concept known as chunking) makes the process feel more manageable, builds confidence, and keeps salespeople moving forward—one milestone at a time.
Sales incentive structures to drive performance consistency
Incentivise learning engagement
How it works:
Consistency thrives on confidence—and confidence comes from knowledge. When salespeople fall behind on product updates or market shifts, performance wobbles. Incentivising ongoing learning—through training modules, reinforcement activities, and personalised learning journeys—keeps your team sharp, agile, and ready to sell.
Example:
Tie rewards to learning milestones. Think badges for module completions, shoutouts for top quiz scores, or surprise perks for consistent engagement. This approach draws on loss aversion (no one wants to lose their top learner status), variable rewards (unexpected bonuses keep things exciting), and social proof (leaderboards show who’s leading the learning charge).
Benefits:
You get a more knowledgeable, confident salesforce—and fewer peaks and troughs in performance. It’s a win for salespeople, and a win for results.
Sales incentive structures to close the gap
Short-term sprints and recognition-based rewards
How it works:
When salespeople are off pace, long-term targets can feel out of reach. Short-term sprints—weekly or bi-weekly challenges—offer a reset. Focus on specific behaviours like calls made, demos booked, or pipeline created, and reward progress quickly and visibly.
Example:
“Book five demos this week and earn a reward.” Or introduce a Momentum Award—given to a salesperson who’s made meaningful progress in key areas. The winner gets a spotlight on the company intranet and the chance to co-host a team huddle to share what’s working.
Benefits:
Quick wins create frequent feedback loops and tap into temporal discounting—we’re more motivated by rewards we can see now. Recognition also fuels status motivation and social reinforcement, which are especially powerful for salespeople who need a boost.
Sales incentive structures for generating incremental sales
Self-selected goals
How it works:
When you’re aiming for those extra wins beyond baseline performance, motivation can be tricky—especially if targets feel imposed. A better way? Let salespeople choose their own stretch goals from a set of tiered, personalised options.
Example:
Rather than assigning a fixed target, offer three incremental growth goals—each with a reward that increases in value. This taps into self-determination theory (autonomy boosts motivation), idiosyncratic fit (people commit more when a goal feels tailored to them), and commitment bias (once we choose a goal, we’re more likely to stick with it).
Benefits:
Because the choice is theirs—and feels right for them—salespeople are more likely to stay engaged, push themselves, and follow through. The result? A team that’s not just hitting targets, but stretching beyond them.
Sales incentive structure checklist
Designing a sales incentive structure that actually works takes more than good intentions—it takes structure, clarity, and a little behavioural science. This step-by-step checklist will help you build a programme that’s not only comprehensive but genuinely motivating, with no important detail left behind.
Step 1: Set clear goals
Start with the end in mind. What exactly are you trying to achieve?
Make your goals SMART:
- Are they Specific enough to guide action?
- Can you Measure and track performance accurately?
- Will participants Own the goals and believe they’re achievable?
- Are they Relevant—can the salesperson actually influence the outcome?
- Is the Time frame realistic based on your sales cycle or seasonality?
Want to go deeper? Learn how to design a SMART incentive plan in our blog.
Step 2: Define your incentive audience
Not everyone needs the same nudge. Personalisation is key.
Ask yourself:
- Are you including everyone who can influence your goals?
- Do you understand your audience well enough to tailor communications and rewards effectively?
Step 3: Determine the budget
A great incentive plan balances impact with sustainability.
Aim for an 80/20 split:
- 80% on rewards
- 20% on programme management
Consider:
- What are the operational costs to run the programme well?
- Is the reward budget strong enough to inspire action and deliver a positive ROI?
Curious how budget shapes your structure? Explore our guide on budgeting for sales incentives.
Step 4: Develop the structure
Clarity beats complexity—every time.
Think about:
- Is the structure simple, transparent, and easy to engage with?
- Will it grab attention and feel exciting to your audience?
- Does it align with your goals, budget, and timeframe?
- Are you innovating—or just repeating what’s been done before?
- Could there be any unintended consequences?
Dive into the fundamentals of sales incentive structures
Step 5: Choose the right rewards
One size rarely fits all—especially when it comes to motivation.
Ask yourself:
- Will the rewards genuinely excite and engage your audience?
- Are they culturally relevant and locally appropriate?
(e.g., team-based rewards may resonate more in collectivist cultures)
Want to know what really motivates? Read our guide on reward efficacy and performance.
Step 6: Monitor, evaluate and adjust
he best programmes evolve.
Make sure you:
- Define what success looks like from the start
- Track and report on key performance indicators
- Measure ROI and be ready to adapt based on what the data tells you
Is your sales incentive programme delivering the results you need? Our comprehensive guide reveals how to track and optimise your incentives for maximum impact.
Maximise your sales potential with expert guidance from BI WORLDWIDE
Designing a sales incentive programme that delivers real results can be complex—especially with global teams, hybrid workforces, and shifting priorities. That’s where we come in.
Our team of specialists can help you build a tailored, dynamic incentive structure that fits your business, your people, and your goals.
Let’s turn your sales goals into real-world results
Speak to our experts and discover how the right incentive structure can transform your team’s performance.