Your plan sounds good. My only question would be if you have a history of meeting these types of sales numbers.. i.e are the sales projections based on prior sales people or is this a new company and these are the sales numbers you are trying to reach.
We are new at hiring and working with sales executives/reps, so we would appreciate pros' feedback on the compensation plan draft we've researched and developed. Please, provide full critique. Here it goes:
Industry: Internet Marketing, product: selling site memberships and access to training resources, sale closing time: 1-2 weeks, products price range: $200 - $2,000
1. The model would be draw vs. commissions + bonuses for desired sales behavior
2. Sales person would get 30% on reaching target sales amount
3. Sales person would have to hit $7,500 (50%) target in sales first month, and $15,000 (100%) in the second and further months to earn 30% commissions
4. This target would mean selling around 10-15 memberships a month
5. There are bonuses like, increased % (to 50%) on reaching $25,000 in sales, $2,000 bonus on 3 consecutive months of reaching or exceeding the targets.
6. The draw against commissions would be $2,000/mo
7. If the person doesn't reach targets after 2 months or owes the company more than $4,000 (2 draws), he/she is out of the team
We would really appreciate honest feedback from a sales pro,