Sales Force Incentives Plan

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SalesForce Incentives Plan


SalesForce Incentives Plan

Salesforce incentives program/plan is a business tool that is applied tocompensate or motivate sales professionals or sales agents for agiven period or for achieving the outlined goals or metrics for theperiod. Many business premises may decide their sales forceincentives plan to be based on commission based, salary orcombination of both. The paper is going to compare the incentivesplans used by five competing textiles industry in the USA named:Nike, Ralph Lauren, Old Navy, Gap and Levi Strauss &amp Co(Fitzpatrick, 2015).


Nikeis among the best-performing companies in the states mostly in thefield of textile industry with a current annual sale of $30.6billion. To achieve these sales, Nike has a well-structured systemfor compensating all the field sales agents and it distributors, andit uses the combined sales and commission based incentive plan. Thesales plan is structured to give maximum compensation to the bestagents in every subcategory in the sales and the distribution line.

RalphLauren Company

RalphLauren is a close competitor of the Nike company with annual sales of$ 7.6 billion. The company uses the salary based incentive to themost performing sales agents for a given period by paying double thepay. The plan is structured to award double pay for the mostperformed sales agents, 80% of the total salary to the secondperformed and 75% of the third best.

OldNavy company

OldNavy is another textile company that is posting a huge competition toperforming textiles industry with an annual sale of $6.6 Billion. Thecompany compensates it sales agents by commission based incentiveswhere commission is set with given percentages for sales above theallocated unit. For example, if one sales 100 Units, then the awardedcommission is zero but in the case of 101 units, the sales agentsgets 1% of the sales for that extra unit that is added to the monthlysalary.

TheGap Company

TheGap company is another textile industry with annual sales of $ 6.2Billion, and it has structured it sales incentives plan on onlycommission. The program is structured to give the sales agent 0.5% ofthe total price as the payment of the sales.

LeviStrauss &amp Co.

Thecompany has an annual sale of $4.8 Billion, and it applies thecombined salary and commission based sales force incentives plan. Theplan is structured to award an equal amount of monthly pay to theleading sales agent, half the monthly pay for the second and aquarter to the third best.

Salesforce incentives plans are major tools that are used to boost thecompany sales by encouraging all employees to work hard since thereis an extra reward for all hard working sales representatives andagents after the expiration of the given period in the plan.


Fitzpatrick,H. (2015, July 6). The Top 10 clothing companies in America. BusinessInsider.