Sales Kickers Explained: Types, Benefits, and How to Use Them Right

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Motivated employees are 87% less likely to resign. 

Motivated employees work 20% better. 

Companies using incentive programs reported a 79% success rate in achieving their established goals.

These numbers tell a compelling story: motivation and recognition are absolutely crucial, with the power to create a dramatically positive impact!

This is especially true in sales, where it’s not just about meeting targets; it’s about consistently exceeding them. Sales kickers, or performance-boosting incentives, help motivate teams to push beyond their regular goals. By strategically adding sales kickers to compensation plans, companies can inspire reps to bring in bigger deals, secure long-term clients, or expand into new territories, all of which contribute to long-term growth.

This guide will cover the essentials of sales kickers: what they are, why they’re beneficial, the types available, and how to use them effectively to drive performance.

What Are Sales Kickers?

A sales kicker is an extra incentive or bonus designed to encourage salespeople to go beyond typical goals. Often based on specific achievements, like signing a high-value contract or closing a deal in a new market, kickers give sales reps an added financial boost for hitting above-and-beyond milestones. Unlike standard commissions, kickers are focused rewards that align with short-term goals or company priorities.

For instance, if the company wants to grow its market share in a new industry, a sales kicker might reward reps for each new client brought in from that segment. These incentives drive focus and effort toward areas critical to the company’s strategy, creating a clear alignment between business goals and individual performance.

Benefits of Deploying Sales Kickers

Sales kickers come with several benefits that make them attractive for both the company and the sales team

• Increased Revenue Generation

One of the most compelling reasons to implement sales kickers is their direct impact on revenue generation. By providing targeted incentives, sales teams are motivated to pursue higher-value deals and expand their customer base.

• Improved Sales Team Engagement

Sales kickers can significantly enhance engagement levels within the sales team. When reps are aware that their efforts will be rewarded with specific incentives, they feel more motivated to excel in their roles.

• Encouragement of Healthy Competition

Sales kickers naturally encourage a spirit of healthy competition among team members. By establishing clear targets and incentives, sales reps can see how their performance stacks up against their peers, driving them to perform better.

• Boosting Sales Performance & Motivation

Sales kickers are inherently designed to boost performance and motivation. When reps have specific, tangible goals to aim for, they’re more likely to put in the extra effort required to close deals and meet their targets.

Looking for fresh ideas to keep your sales team motivated? Check out our guide here: Top 20 Sales Incentive Ideas to Stoke Your Sales Team's Motivation

Types of Sales Kickers

Each type of sales kicker targets different areas of sales performance, making it important to choose the right kicker for your team’s goals.

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 Here’s a breakdown of popular types:

1. Upfront Cash Kickers

• What They Are: These kickers offer immediate cash bonuses for specific actions, such as signing a contract or bringing in a deal above a certain threshold.
• Why Use Them: They motivate reps with a quick, tangible reward, which is especially effective for short-term goals or fast-turnaround incentives.

2. Contract Length Kickers

• What They Are: Bonuses that increase with the length of the contract a rep secures, often given for multi-year agreements.
• Why Use Them: Encourages reps to close deals that guarantee longer revenue streams, benefiting company stability and revenue predictability.

3. Inflation Kickers

• What They Are: This kicker adjusts commissions to account for inflation or cost increases, ensuring reps aren’t penalized when rates change.
• Why Use Them: Keeps reps focused on high-value contracts without worrying about fluctuating prices, especially useful in inflationary times.

4. Churn Kickers

• What They Are: Kickers that reward reps for minimizing customer churn, often tied to renewals or upsells.
• Why Use Them: Effective for companies focusing on customer retention and loyalty. It encourages reps to build stronger, long-lasting client relationships.

5. Reverse Kickers

• What They Are: These involve a slight reduction in commission if certain conditions aren’t met (like hitting a minimum deal size).
• Why Use Them: These can prevent underperformance, keeping reps focused on closing deals of a minimum size and quality.

6. Clause Kickers

• What They Are: Bonuses tied to meeting specific terms in a contract, such as securing a premium service add-on or specific client demographics.
• Why Use Them: By rewarding reps for specific clauses, these kickers can help the company align contracts with strategic needs, such as expanding a client base in a new market segment.

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Drawbacks of Implementing Kickers as Part of Compensation Plans

While kickers can be powerful, there are some considerations to keep in mind

❌Potential for Short-Term Focus

One of the primary drawbacks of using sales kickers is the risk of encouraging a short-term focus among sales team members. When reps are incentivized primarily by immediate rewards, they may prioritize closing quick deals over building long-term relationships with customers.

❌Complexity in Compensation Structures

Implementing sales kickers can add complexity to compensation structures, making them more challenging for sales teams to understand. If the kicker system is convoluted or poorly communicated, it can lead to confusion among reps.

❌Inequity Among Team Members

Sales kickers can inadvertently create a sense of inequity among team members, especially if the criteria for earning kickers are perceived as unfair or unattainable by some.

❌Increased Pressure on Sales Teams

While a certain level of pressure can be motivating, excessive pressure can lead to burnout and decreased job satisfaction. 

In a Nutshell

People work for money, but go the extra mile for recognition, praise, and rewards. Sales kickers add that extra spark, energizing your reps to push beyond their limits and take pride in their achievements. By setting the right kickers, you create a performance-driven culture that doesn’t just aim for numbers but celebrates every success along the way.

Are you ready to take the leap and introduce kickers that’ll propel your team forward? There’s no better time to put these incentives to the test and see just how far your sales team can go!

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