Sales commission policies are formal documents that outline how a company will reward its sales team for any sales transactions they close successfully. These policies should be created in an organized, engaging and comprehensive way to incentivize the salesforce to reach their highest potential. When crafting a sales commission policy, businesses should ensure there is clarity about: which products are eligible for commissions; what percentage of each sale should be paid out in commission; and when the payments should be made. By establishing a strong compensation framework, companies will be able to motivate their teams to exceed expectations and stay motivated throughout the year.