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Commission
We need to move from paying at booking to paying when cash is collected – how?
The business may have to deal with the problem that the lag created by the new sales crediting policy will mean a permanent loss of income for the sales people…
What kind of plan is best when there is a lot of account movement between reps
A lot of account movement between reps may point to opportunities to improve sales effectiveness that have nothing to do with compensation design, like…
How to pay for vacation for a 100% commission sales role
Sales people on 100% commission plans need vacation time too. How does the idea of “paid vacation” work in a 100% commission job?
Paying for long-term contracts
If the sales person is expected to “account-manage” the account and ensure satisfaction throughout delivery (perhaps while also looking for opportunities to expand the business in the account), then payment over the life of the contract would be appropriate…
What is the difference between a commission and a bonus?
The difference is that the “commission” is communicated as a “piece of the action” (e.g., 2% of revenue, $5 per unit, 6% of margin dollars); whereas a “bonus” is a fixed incentive amount offered for achieving a specific objective, often with less offered for lower achievement levels and more for higher levels.
Commission payments following termination
What do we do when a sales person leaves the company before the last payment is made for a contract closed by the sales person? Do we still pay after termination?
What about commissions paid for non-profit fundraising?
Fundraisers are often paid a percent of the funds they raise, though the fundraising organization is often hesitant to have that be publicly known. I have seen rates as high as 50%…
What expenses are normally covered for 100% commission sales people?
Assuming the sales people are dedicated to the company (full time, not selling complimentary products produced by a different company), then many companies offer reimbursement for business expenses based on a set policy. The eligible expenses may include…
How do we pay a 100% commission sales person for the first few months of work? Is a draw a good idea?
I am assuming from your question that these new reps will be on 100% commission plans eventually (no base). So your question is how to structure the draw to give them some income while they fill their pipeline and get those first few sales…
What’s a good formula for a commission plan based on obtaining orders?
For a commission based incentive plan, based on obtaining orders/circulations of products/consumer goods in bulk, here are some suggestions about when a particular commission plan type might be most beneficial…