Questions

Hi, We are a start-up software company, that sales software for facial image analysis (.e.g., face recognition). I am looking for sales people, and I want to compensate 100% based on their sales. I thought to compensate as follows: 1) If they find potential costumers and I close the final deal, then I give them 5% of sales. 2) If they finalize the contract with the company, then I plan to give them 15% of net sales. Does it makes sense? Thanks

I'd make sure you have a process in place in Salesforce to ensure there is a line in the sand regarding the difference between a lead and sale. I've seen issues come about if there is no set process in place, resulting in a grey area.

Also, I'd consider having a variable commission structure.
i.e.
$0-$50K = 10%
$50k-$100K = 12%
$100K - $200K = 14%
$200K - $300K = 16%
etc...
The more a sales a salesperson brings in, the more commission they should make.


Answered 8 years ago

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