Feedback on Sales Compensation Plan Wanted

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Comments (2)

karyn in Glendale, Arizona

105 months ago

Hi Marina!
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,

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79 months ago

Great plan Marina,
As a sales professional for some time I have found that obtainable goals generate energy in your sales force and success for the business. Concrete forecasts and stability and trend growth from informed resources makes an opportunity for success. At the end of the day win win programs that allow for hard and smart work to be rewarded are sustainable.

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