Tag Archives: Sales Commission Plan

5 Common Sales Commission Structures

Easy-CommissionChoosing the best sales commission structure is important to motivate your sales people and achieve your business profit. However, there are many factors that can impact sales commission. Some of these factors include: what you are selling, your employees, the industry, your company size, sales cycle length, and more.

The most common and simple sales compensation plan is made by providing commission as a percentage of a single sale’s revenue. If a product sells for $2,000 with a sales commission rate of 5%, a sales professional would collect $100 for each product they sell.

Common sales commission structures include profit, gross margin, tiered commission structures, straight commissions, draw against commissions. Continue reading

Commissions: Pros and Cons

CommissionsThe debate on whether paying your sales agents commissions is good for your company or not has seen a lot of heated and passionate discussions over time. There are parties who are strictly opposed to the idea of paying commissions, and there are parties who are strictly pro-commissions.

But should there really be a hard line between the two? Continue reading

Timely Compensation Plans

It’s March and we’re coming up to the end of the first quarter of 2009. Is your Sales Compensation Plan for 2009 in place? It’s surprising how many well-run, best of breed companies fail to put their sales commission plan in place in a timely fashion or fail to properly communicate how their sales people will be compensated. Continue reading