Advice needed on commission and bonus structures

[shaunb]

Hi,

I am taking on a sales executive, part time for now, and they will be on a base salary of £15k (pro rata, only working part time) and I was wondering what sort of sales commission would be suitable. I have been told that the base salary is decent, so just need advice on the commission side of things.

The person will be selling web design (minimum of £500, up to the thousands), and digital marketing services. As well as some software packages that we develop. I have had people talk about everything from a points system, sliding scales, percentages etc. so any web/online marketing people who already has in place what I am planning, I would love to hear from you, PM me if possible!

Thanks

Shaun

 

[greyheart]

Everywhere I've been has always just been a percentage. Sometimes places do something like 5% for warm leads (meaning they've contacted you 1st) and 10% for a cold lead generated by the exec.

Personally we just do a flat rate and I try to handle most inbound stuff personally. Hope that helps.

 

[r8ash]

Where are you based? it depends on location as well as how motivated you want your sales staff to be, I have sold digital for 14 years and I have kpi's as part of my targets, ie: new business contacts, number of meetings, etc.

 

[crowdcorp]

I've helped implement an online sales team scheme. It is a sliding scale scheme and average commission payout works out at about 7 to 8% of total booking value - so similar ballpark to what @greyheart mentioned.

 

[JonathanMorse]

Whatever you choose to do you should make it exponential in terms of %. This drives the sales exec to go at it really hard from day 1 so that they can quickly be earning a higher rate of commission. Chuck a few little bonus incentives along the way, nothing too expensive just little gifts that let them know that you appreciate the hard work they are putting in.