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How a Sales Incentive Program Engages Sales Reps to Succeed

The importance of a good sales commission structure is standard in many sales roles and a key aspect of sales compensation. But in tandem with a motivating commission structure, an exceptional sales incentive program is an impactful catalyst to engaging sales reps in driving them to achieve more.

Traditionally, rewarding sales reps has solely revolved around cash incentives. If sales reps crushed their quota for the quarter, then they’d receive a cash bonus on top of their commission to compensate them for a job well done. Sounds simple enough, right? But the real question is: is this model still engaging for reps in 2024? Now more than ever, sales incentive programs are shifting.

Engaging the Modern Sales Team

The reality is that as Millennial and Gen Z individuals start to enter and account for more of the workforce, simple cash incentives are becoming a thing of the past. Why? Because this is simply not enough to motivate newer generations in sales. Unlike previous generations, monetary rewards alone may not resonate with these newer cohorts. Sales reps today are looking for more than just a paycheck; they seek recognition, personal growth opportunities, and a sense of purpose in their work.

Research from Gallup highlights the tangible benefits of a well-crafted sales incentive program. Highly engaged teams have been shown to boost business profitability by a significant 21%. This statistic underscores the critical role that motivation plays in driving sales performance and overall team success. But as newer generations enter the fold and are driven differently based on what they want out of the workplace, sales incentive programs need to shift with them.

What is a Sales Incentive Program?

A sales incentive program is comprised of possible rewards and recognition that sales reps receive if they reach certain business goals or outcomes.

They differ from a sales commission structure in that sales incentive programs are usually designed as “extra sweeteners” for a job well done, whereas commission is directly tied to a rep’s salary and a key aspect of sales compensation.

These programs are oftentimes tied to concrete and measurable sales KPIs, such as achieving a certain number of closed deals or reaching a specific revenue target. They are designed to not only motivate sales teams to achieve more but also to excel beyond their usual performance levels.

To effectively lead sales reps and drive results, companies need to tailor their incentive programs to suit the preferences and motivations of the diverse individuals within their sales teams. By understanding and catering to different personality types, a sales incentive program can create a supportive and collaborative culture that boosts morale during challenging times. Stick around to learn how to successfully start a sales incentive program that motivates your team to goal effectively.

Building An Engaging Sales Incentive Program

Foster Employee Appreciation

Showing appreciation to your sales team is crucial for fostering a positive work environment and encouraging top performance. When employees feel valued, they are more motivated to excel in their roles.

Contrary to popular belief, effective sales incentive programs do not have to break the bank. While fancy incentives can be appealing, what truly drives sales reps is the recognition and acknowledgment of their hard work. Simple gestures like a free PTO day, a social media shoutout, or a one-minute speech hyping up a high-performing rep at the next team meeting can go a long way in motivating sales reps to go above and beyond in their performance.

Build a rewards shop for your sales reps and make sure to include incentives that create a culture around appreciation and support. For example, free rewards like surprising reps with their favorite lunch or letting them have control of the aux in the office for the day help build appreciation and connection on sales teams that ultimately benefit tangible sales KPIs.

Boost Morale on Your Team

A common theme around building an effective sales incentive program is that small gestures can have a big impact on employee happiness and motivation. Boosting morale on your sales team is crucial for maintaining high levels of motivation and fostering a positive work environment.

Show your team members that their hard work does not go unnoticed. Acknowledge their achievements, big or small, and publicly recognize their efforts. A simple "thank you" or a shoutout during team meetings can go a long way in boosting morale.

Organize fun team building activities outside of work to strengthen team camaraderie. Activities like team lunches, sports events, or volunteering together can help team members connect on a personal level and boost morale. For remote or hybrid teams, hosting virtual team-building events (virtual escape rooms, trivia games or Kahoot sessions are particularly fun!) and prioritizing quarterly in-person retreats to reconnect in-person whenever possible are great.

When creating a rewards shop as part of a sales incentive program, be sure to include rewards that aim to cultivate boosting morale on sales teams. For example, fun prank incentives, like giving reps the opportunity to create the rules for the next sales competition or a ticket to steal the next hot inbound lead, creates a culture of friendly competition and fun, which leads to strengthened relationships between sales reps.

Foster Camaraderie

Creating a strong sense of camaraderie among your sales team is key to fostering collaboration and teamwork, which ultimately leads to greater success. When sales representatives feel connected to their colleagues and valued by their organization, they are more motivated to perform at their best.

Encourage teamwork and collaboration by creating opportunities for shared experiences and rewards. When sales reps work together towards common goals and celebrate achievements as a team, they develop a strong sense of camaraderie that propels them towards success.

In your rewards shop, including fun incentives, such as letting reps choose their manager’s Zoom background for a week or having someone give a one minute speech in the next team meeting on why a certain rep is awesome, is a fantastic way to create connection and camaraderie on your team.

7 Fun [and Free!] Sales Incentive Ideas

  1. Free Paid Day Off: Who doesn't love a day off to relax and rejuvenate? Offering a free PTO day as a sales incentive can be a great way to recognize sales reps' efforts and give them the well-deserved break they need.
  2. Choose a Coworker's Celebration: Cultivate a playful sales culture by allowing sales reps to change their teammates’ YouTube celebrations on SalesScreen for fun office shenanigans. Our customer’s sales team over at Trailstone Insurance Group took it to the next level by changing all of their YouTube celebrations to Rick Astley’s “Never Gonna Give You Up” and trolling their Sales Director until he noticed.
  3. Coffee on the House: Surprise team members with a free coffee or treat as a token of appreciation for their hard work.
  4. DJ for the Day: Treat your music-obsessed reps by letting them curate the vibes in the office for the day. Reps can curate a playlist to keep the energy high and create a vibrant atmosphere that fosters productivity and teamwork.
  5. Zoom Lunch with CEO: Imagine having the opportunity to have a one-on-one virtual lunch with the CEO! This incentive not only provides a chance for sales reps to interact with top management but also serves as a motivational reward for their hard work and dedication.
  6. Social Media Shoutout: Have any budding LinkedInfluencers on your team? Make them feel extra special by shouting out their biggest achievements on social. A social media shout out acknowledging a sales rep's achievements can not only boost their morale but also showcase their hard work to a wider audience.
  7. Spontaneous Late Arrival or Early Departure Days: Let a rep’s manager spontaneously decide when a rep can take some time back to recharge. For example, a quick email from their manager that says, “It’s a beautiful afternoon. Go enjoy it.”

Trailstone Insurance Group's shenanigans when choosing a coworker's celebration on SalesScreen.
Trailstone Insurance Group's shenanigans when choosing a coworker's celebration on SalesScreen.


In the world of sales, keeping your sales reps motivated and engaged is crucial to driving success. A well-designed sales incentive program can be the key to unlocking your team's full potential and driving them towards exceeding their targets. By understanding what motivates your sales reps and aligning your incentives with those motivations, you create a win-win situation where both the sales reps and the company benefit.

Remember, a successful sales incentive program is an ongoing process that requires monitoring, evaluation, and adaptation to ensure continued success. With the right program in place, you can create a team of highly motivated, engaged sales reps who are driven to succeed and propel your business to new heights.

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