Blog Information

• Posted By : Eldon Broady
• Posted On : Mar 10, 2021
• Comments : 2
• Views : 342
• Category : Technology
• Description : When sales is a big part of your business, it makes sense that you’ll want to have a good sales commission plan to draw in the best sales people. Deciding on a sales commission plan can sometimes be difficult, because there are definitely a lot of options out there. Let’s take a look at some of the most common ones to help you pick one that works best for your company.

Overview

• When sales is a big part of your business, it makes sense that you’ll want to have a good sales commission plan to draw in the best sales people. Deciding on a sales commission plan can sometimes be difficult, because there are definitely a lot of options out there. Let’s take a look at some of the most common ones to help you pick one that works best for your company. Get the best sales commission plan by visiting this website.
  
  

  Base Salary and Commission
  
  

  This is one of the most common sales commission plans, and for good reason. Many salespeople will be attracted to this model because it shows that the company wants to invest in their talent and are interested in supporting them. When a salesperson has an hourly rate or a salary, they don’t have to rely entirely on their sales quota to make a living. Even the best sales employees might have a bad month, and with nothing to fall back on, they could be in financial trouble. The commission usually provides plenty of incentive for driven sales people.
  
  

  100% Commission Based
  
  

  Some companies pay their employees entirely on commission. This is definitely a riskier option for both the employer and employee. Employers will likely see a lot of turnover because employees might not be able to support themselves on this model. Also, you’ll need to give up a larger portion of the revenue from the sale if you want to keep people around. Sales employees will be relying entirely on being able to sell for their salary.
  
  

  Tiered Sales Commission Plan
  
  

  This commission plan is popular for many reasons. It encourages people to perform at a high level. With a tiered commission structure, sales employees will make more commission after they reach a certain level. For instance, let’s say they sell $100,000 worth of product in a certain period of time. This would put them in the next tier that might pay something like an extra 2% commission. This kind of structure encourages sales employees to increase their numbers to make even more money per sale.
  
  

  Make Sure to Track Commissions
  
  

  Once you’ve decided on a commission plan, make sure you have something that can help you and your employees easily track commissions. There are great commission systems out there that can provide you with commission reporting, commission management tools, and much more.
  
  

  To learn more about tracking sales commission, click here.