Sales teams are the lifeblood of any business. They drive revenue, build the foundations for customer relationships, and ultimately propel a company forward. But let’s face it—even the most naturally driven salespeople lose their mojo now and then. Having a strategy to motivate sales reps is always a good idea. Salespeople like recognition and rewards for their hard work. And according to Gallup, the stakes are high: employees who don’t feel adequately recognized are twice as likely to quit within the next year.
But, too often, leaders take the wrong approach in motivating sales reps. Rewards and incentive strategies must be used carefully, because they can seriously backfire. Let’s talk about how rewards can have adverse effects when misused and how to avoid those misuses so your reward system aligns with reps’ natural drive, building lasting sales motivation.
Mistake #1: Rewarding Overachievers with Money Alone
Sure, money sounds like the ultimate motivator. Who doesn’t want money? Cash-based rewards often fall short, though. This is especially true when you offer cash-based rewards to top-performing, seasoned salespeople.
An analysis from Baylor University’s Keller Center shows that intrinsic motivation—the internal drive to do well for personal satisfaction—is more strongly associated with sales performance than extrinsic motivators like bonuses. This is especially true for experienced salespeople and B2B sales reps, for whom factors like job purpose and professional growth often outweigh pure financial incentives.
💡 Tip: Instead of increasing cash bonuses for high achievers, tap into what genuinely drives them: opportunities for growth, recognition, and purpose. Reinforce their intrinsic motivation by aligning rewards with learning, such as certifications, exclusive training opportunities, or mentorship roles.
Mistake #2: Trying to Motivate Sales Reps When They’re Already Tapped Out
When sales reps are already working at full capacity, additional rewards can sometimes have the opposite effect, leading to frustration rather than motivation. According to a Hoffeld Group study,
“The real danger comes when salespeople are working at maximum capacity, and they are given a carrot to prompt them to exert more effort. This will ultimately demotivate them…If salespeople are putting forth maximum effort, the carrot will diminish morale and increase frustration.”
💡 Tip: If your sales team is already working hard, look for non-monetary ways to recognize their effort, like a public acknowledgment, an extra day off, or even a lunch in their honor. These acknowledgments won’t add pressure but will show them that their effort is seen and valued.
Mistake #3: Creating an Expectation of Rewards
Sometimes rewards encourage the idea that you should work only for the reward, not for the love of your job. When companies train sales teams to work only for the rewards, they risk creating dependency on rewards. As economist Anton Suvorov puts it,
“Rewards are addictive…a contingent reward makes an agent expect it whenever a similar task is faced, which in turn compels the company to use rewards over and over again.”
Over time, the sales incentive could lose its impact, making it necessary to either keep increasing the reward amount, or take the reward away altogether—both of which can have disastrous consequences.
💡 Tip: Break the expectation cycle by mixing in unexpected rewards. Instead of predictable bonuses, offer spontaneous recognition or a surprise “employee spotlight” award. This approach keeps salespeople on their toes without building an unhealthy dependency on rewards.
How to Motivate Sales Reps the Right Way
After considering the pitfalls, here’s how to design a reward program that energizes your sales team sustainably.
1. Reward behaviors that build long-term success.
Sales isn’t just about closing deals; it’s about building the skills and mindset that lead to success. According to James E. Zull, author of The Art of Changing the Brain, learning and motivation are inseparable. When we reward learning, we fuel motivation.
Consider rewarding sales reps for:
- Earning certifications or licenses that enhance professional skills
- Completing training programs or sales workshops
- Participating in company-hosted learning challenges or trivia quizzes
By rewarding continuous education, you’re reinforcing a growth-oriented culture where motivation goes beyond immediate sales targets.
2. Encourage friendly competition.
Healthy competition can ignite motivation without creating the pitfalls of performance-based sales incentives. When you run a sales contest, you don’t risk giving the impression that you’re trying to manipulate behaviors or implying that salespeople are “withholding” effort. You’re inviting sales reps to compete against each other, which naturally-driven salespeople love!
Examples:
- Real-time leaderboard where sales reps can see their standing
- Exciting “check-ins” with sports-like commentary to keep spirits high
- Themed challenges that play into friendly rivalries
Salespeople with a natural drive will enjoy the contest aspect, and those who perform well are recognized publicly—a win-win for morale!
3. Offer personalized rewards.
Offering variety in sales incentives allows reps to choose something meaningful to them, which can increase motivation. Personalized rewards tend to create a stronger motivational pull, as they connect to individual preferences and values.
Options to include:
- Gift cards to popular retailers and restaurants
- Branded debit cards that can be used anywhere
- Access to a diverse catalog of prizes, from electronics to experiences
This kind of tailored approach shows that you’re attuned to your team’s preferences and are committed to rewarding them in ways that resonate personally.
4. Surprise sales reps with recognition and rewards.
One of the best ways to motivate sales reps without creating unhealthy reward dependencies is to introduce the element of surprise. Rewards that recognize effort over specific behaviors help to acknowledge the team’s collective and individual contributions.
Ideas:
- Surprise shout-outs in team meetings
- Quarterly or monthly awards for overall sales performance
- Recognition that aligns with company values, showcasing role models for others
These rewards encourage team members by celebrating their work ethic and attitude, creating a high standard for the whole team.
Conclusion: Sustainable Sales Motivation Drives Success
Motivating sales reps effectively isn’t about endless bonuses and incentives. It’s about fostering an environment where they feel valued, supported, and recognized—without creating a dependency on extrinsic rewards. When companies reward behaviors that encourage growth and professional development, they’re building a more self-sustaining, resilient team that’s ready to perform even when the next “carrot” isn’t in sight.
