Comp Structure - Sales

[Buckley99]

Questions for...

Sales Leaders - how do you compensate your sales people (I don't need specific numbers/%)? Straight commission? Salary plus bonus? Something different? Depends on the situation? Why did you choose that plan? What are the benefits/drawbacks of your chosen comp structure?

Sales Professionals - how are you compensated? Do you like your current structure? Is there a cap? Do you believe you are incentivized to act in the best interest of the company?


Reason for asking - our company has been using the same comp structure for decades and I/we are evaluating the current plan to see if we want to stick with it or go another direction.

Thanks in advance!

[Mertzon Man]

I don't know if there is the perfect plan. I've been in sales for 42 years, every time you have a great year the company makes your budget so high the next year you get less pay. I've been on high salary low commission and vice versa. You have a salesperson that is knowledgeable, has great relationships with customers, and bust his tail for you, pay him what he's worth and keep him happy.

[rtp]

My guys were 100% commission with no cap. I wanted them to be so successful they made $1mm a year. I never understood companies that capped a true salesman. I did provide a small/reasonable draw while they were establishing themselves.

[josh3]

I am paid on a draw system. I get a weekly check and then a commission check once a month that my draw is deducted from. My commissions are not capped and I can make as much as I can sell. We have had more than one salesman making 900K+ a year. We have 25 salesman and I would guess average salesman is making at least 250K.

[Buckley99]

To clarify, we aren't doing this to cut pay. I believe reps should be paid what they are worth. Our purpose in reviewing the comp plan is to make sure our reps are incentivized to pursue/close/manage business in a way that is aligned with our corporate goals.

[JLivi1224]

I've been in sales my whole professional career. We are 100% commission, with no cap. I love this pay structure. Get out and hustle or you won't be in the market long!

[JLivi1224]

I am paid on a draw system. I get a weekly check and then a commission check once a month that my draw is deducted from. My commissions are not capped and I can make as much as I can sell. We have had more than one salesman making 900K+ a year. We have 25 salesman and I would guess average salesman is making at least 250K.

Josh, may I ask in what field?

[Meatcutter]

I am salaried with bonuses. Only been in Sales for 4 years.

[HoustonHunter94]

I've been under a lot of different plans. Currently a decent salary with monthly commissions with no cap on earnings. My company's bonus plans come in the form of yearly goals that start over each January. That is done so people are incentivized to continue to sell and not rest on what they did the previous year.


Sent from my iPhone using Tapatalk

[josh3]

Josh, may I ask in what field?

Ag equipment sales

[Texans42]

I am paid on a draw system. I get a weekly check and then a commission check once a month that my draw is deducted from. My commissions are not capped and I can make as much as I can sell. We have had more than one salesman making 900K+ a year. We have 25 salesman and I would guess average salesman is making at least 250K.

Yelp same but our commissions are paid weekly. Our number one last year made 1.2

[JLivi1224]

Ag equipment sales

Maybe I should be selling Ag equipment! Haha