Did you think that preparing a sales compensation plan was extremely difficult? Actually, it isn’t. However, there are some intrigues involved that make it trickier than determining a salary range for the rest of your employees who are in non-sales posts. The dilemma is always in determining a balanced plan where you aren’t overpaying your salespeople or underpaying them. This keeps most business owners wondering, “How much should I pay my salesperson?”
Arguably, a business’s balance sheet is as healthy as its ability to sell. It thus follows that sales teams play a key role in determining whether a business grows or goes down the drains. Therefore, as a startup, if you are going to trust anyone with this enormous responsibility, then they must be up to the task. So, how do you determine the right candidate for the sales job? We have some tips for you!
Let’s say you have two offers on a sales job. One is paying commissions only and the other offers a base salary and commission. What do you go for? Is it better to get paid with salary plus commission, or straight commissions? Here's a helpful list of the pros and cons of each model that you can use to help you decide.
Recently, we talked about the various reasons why every company needs a solid compensation plan. We also looked at how much you should pay your sales reps. Today, we continue our journey in discovering the best ways to handle a sales force by highlighting the different options of compensation plans available for businesses. Find out whether your company may need to change its existing compensation structure.
One of the toughest decisions any business owner has to make is how to compensate their sales force well and still remain profitable. On one hand, you don’t want to pay less and discourage your staff which can actually affect their performance negatively. On the other hand, you don’t want to pay too much to stifle the growth of your venture. So, how do you determine how much to pay your salesperson?