TREX Sales Incentive Plan Design 2

Question 1

Which pay mix ratio is most appropriate for a sales role with a long sales cycle, high complexity, and significant non-selling responsibilities?

Accepted Answer

80/20 base-to-incentive

Answer

Roles with long cycles, complexity, and non-selling duties warrant a higher base (80/20) because the rep has less direct control over short-term results.

Question 2

A 'kicker' in a sales incentive plan refers to:

Accepted Answer

An additional bonus paid for selling a specific high-priority product

Answer

A kicker is a special bonus designed to focus rep attention on a strategic product or behavior beyond the standard plan mechanics.

Question 3

What is the primary risk of setting sales quotas too low across the sales force?

Accepted Answer

Underutilization of the incentive budget and inflated payouts

Answer

Quotas set too low cause most reps to exceed target, resulting in budget overruns and payouts that exceed planned incentive spend.

Question 4

In a split-credit plan, when should equal credit be given to both the account manager and the overlay specialist?

Accepted Answer

When both roles contribute measurably to a single sale

Answer

Equal split credit is appropriate when both roles have defined, measurable contributions to winning the same opportunity.

Question 5

Which term describes the percentage of the sales force expected to achieve quota in a well-designed plan?

Accepted Answer

Quota attainment distribution

Answer

Quota attainment distribution describes the expected spread of performance across the sales force, with ~60% at or above quota being a common benchmark.

(TREX) WorldatWork Total Rewards Certification Practice Test

(TREX) WorldatWork Total Rewards Certification Practice Test

TREX Sales Incentive Plan Design 2