Product sales teams operate in a fast-paced environment where deals can close in days or weeks. In some product teams deals could be much longer. This distinct dynamic requires a different approach to sales incentives compared to some other revenue-generating roles.
The Product Sales Cycle
Unlike consultancy sales that focus on relationship building over months or years, product sales typically involve shorter cycles with more frequent cycles. A product sales representative might complete multiple deals within weeks, leading to regular commission payments that directly reflect their performance.
This quick turnaround creates unique opportunities and challenges when designing sales incentive schemes. Let’s explore how we can structure these effectively.

1. Payment Frequency Matters
Sales teams often receive incentive payments monthly or quarterly, reflecting their shorter sales cycles. This regular income stream forms a significant portion of their total compensation.
Regular payment schedules help maintain consistent motivation by creating immediate recognition for success. When sales representatives close a deal, knowing they’ll see the reward in their next monthly pay packet creates a powerful incentive to maintain momentum.
Not only that but frequent payouts help enable better financial planning. Sales professionals often structure their personal finances around expected commission payments, making predictable payment schedules crucial for their financial wellbeing.
2. Keeping It Simple
One of the most crucial aspects of sales incentives is simplicity. Sales representatives should be able to calculate their expected earnings easily. Complex schemes with too many metrics can reduce motivation, and create confusion with unrealistic expectations.
A well-designed scheme should focus on clear, measurable outcomes.
3. The Role of Customer Satisfaction
While hitting sales targets is usually top of people’s priorities, customer satisfaction is undoubtedly important for every organisation. Modern sales incentive schemes often incorporate customer feedback metrics to ensure quality isn’t sacrificed for quantity.
Net Promoter Scores (NPS) provide valuable insight when gathered systematically. This data helps organisations understand the long-term impact of their sales practices. Regular tracking of customer satisfaction trends enables early identification of potential issues and recognition of those who go above and beyond to build positive relationships.
By incorporating customer satisfaction metrics into incentive schemes, we can encourage sustainable sales practices that build lasting customer relationships. This approach helps prevent short-term thinking that might prioritise immediate sales over long-term business success.

4. Avoiding Common Traps
When designing sales incentives for product teams, we should avoid several common mistakes that can undermine their effectiveness:
Too Many Metrics
While it’s tempting to incentivise every desired behaviour, complex schemes can dilute the impact of each measure. This makes it harder for sales representatives to focus their efforts effectively.
Basic professional behaviours like maintaining accurate records, attending team meetings, or completing administrative tasks should be expected as part of the role. These activities support sales success but shouldn’t necessarily need separate incentives.
Unclear Calculations
Employees also need to understand exactly what they need to do to earn their incentives. When calculations become too complicated, people may lose confidence in the system and become demotivated.
A clear, transparent process helps representatives plan their activities and set personal targets. This clarity also reduces the time spent questioning or disputing commission payments, allowing everyone to focus on sales activities.
5. Building Trust Through Transparency
Clear communication about how incentives are calculated and paid builds trust with sales teams. This transparency should extend throughout the entire process, from setting targets to calculating final payments.
Organisations should clearly document and communicate their target-setting processes, ensuring sales employees understand how their goals align with business objectives. Performance measurement methods should be consistent and fair, with regular reviews to ensure they remain relevant.
As well as this, payment calculations should be clear and verifiable, allowing employees to track their progress and forecast their earnings. Regular review periods provide opportunities to adjust schemes as needed while maintaining transparency about any changes.
Conclusion
Product sales incentives require a distinct approach that reflects the unique nature of their cycles. By focusing on simplicity, regular payments, and clear metrics, we can create effective schemes that drive both performance and sustainable business growth.
The key is finding the right balance between motivating high performance and ensuring quality customer experiences. When designed well, sales incentives can be a powerful tool for attracting and retaining top sales talent while driving business success and retaining clients.
For more information about developing effective sales incentive schemes for your organisation, get in touch with our reward team today.