Designing Compensation for Compliance: If you don't pay for it, they won't do it

2025-12-25 | Sales Systems | by DJC AI Team

Salespeople are coin-operated. If you tell them "Please update the CRM," they will ignore you. If you tell them "You don't get paid unless you update the CRM," they will become data entry experts overnight.

Most companies have a Disconnected Incentive Structure:

Goal: Clean Data & Predictable Forecast.
Incentive: Commission on Closed Revenue only.

This creates a conflict: "Every minute I spend updating Salesforce is a minute I'm not selling." The Rep is rationally choosing not to update the CRM.

The "Commission Gate" Protocol

You don't need to change the commission structure. You just need to change the payout trigger.

The Rule: "No Source, No Sauce."

In your Commission Agreement, add this clause: "Commissions are paid on the 15th of the month for all deals Closed/Won in the previous month, provided they meet the Data Integrity Standard."

The Standard:

Original Lead Source is populated.
Decision Maker contact info is complete (Email + LinkedIn).
"Closed Won" reason is filled out.

If a deal closes but the data is missing:

The system flags it as "Pending Data Review."
The commission is held (not cancelled) until the data is fixed.
If not fixed by the next payroll run, it is forfeited (or delayed again).

The Behavior Shift

The first month you implement this, there will be screaming. "I just closed a $50k deal, why isn't it on my check?" "Because you didn't list the Decision Maker."

The second month, your CRM will be pristine. You are no longer nagging. You are simply enforcing a contract.

Paying for "Leading Indicators"

If you really want to drive system adoption, allocate a small percentage of the On-Target Earnings (OTE) to Process Metrics, not just Outcome Metrics.

The 10% "MBO" (Management by Objective) Bonus: Split the variable comp:

90%: Revenue Commission (The Prize).
10%: System Compliance (The Rent).

Compliance Metrics:

0 Overdue Tasks at month-end.
100% of new opportunities created with full data.
Pipeline Velocity within standard deviation.

This signals that how you sell matters as much as what you sell.

Summary

You cannot scale a machine if the operators refuse to follow the manual. Align their wallet with your system, and the friction disappears.

Don't beg for compliance. Buy it.

DJC System is designed with all these in mind.