The SBR Consulting and Xactly white paper examines how to balance sales compensation spend with effectiveness amid inflation, rising costs, and post-pandemic pressures. Sales force costs average 10% of revenues and up to 40% in B2B, yet up to 10% of spend is wasted. Retention is cheaper than acquisition, making cross-sell and renewals vital. The paper outlines six principles for effective plans: simplicity, transparency, feasibility, consistency, cadence, and affordability. Best practices include aligning incentives across teams, rewarding renewals beyond 90% retention, avoiding excessive SPIFs, and ensuring clear, timely payout cycles. Paying commission on renewals boosts motivation, loyalty, and profitability, while enabling predictable revenue streams.

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