QCommission Sample Plans Industry – Printing

Introduction

With approximately 73,000 firms and sales of $210 billion annually, the printing industry is a significant contributor to the overall U.S. economy. Printing firms vary in size from a single employee firms to more than thirty firms employing above 10,000 employees. 50% of the firms employ more than 4 employees. Some of the types of printing firms in the marketplace are: General commercial printer, specialty printer, screen printer, publication printer, book printer, etc.

Printing firms have been going through some massive changes in the last two decades due primarily to technological advances. Here are some key changes that have affected the printing industry recently:

Digital printing
Digital link to customers
CTP workflow
Elimination of film
E-commerce
Variable data printing

These advances have changed the landscape of the printing industry and continue to affect it. The printing industry is anticipating many further challenges: 
- Some pre-press production moves in-house due to more powerful computers
- Non-print alternatives such as Adobe Acrobat formats eliminate print volume
- Print advertising is in decline as advertising moves online

Printing firms are looking at being more efficient and innovative to succeed in this changing marketplace. Sales compensation plans are one way they use to align their sales processes with their corporate goals.

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Staff
The following staffs are typically paid sales commissions in this business
Sales Rep
Graphic Designers
Marketing Agency
Manager
 
Products and Services
Print Jobs under various categories
-Digital Printing
-Variable Data Printing
-Books
-Greeting Cards
-Specialty
 
Transactions
The transactions and data driving commissions and bonuses are normally:
Sales orders
Invoices
Payments
 
Performance Measures

Commission is paid against the following performance:
Revenue
Gross Profit
Markup

 
Sales Commission and Incentives

Commissions to sales people are typically paid on sales orders or invoices. Sometimes commissions are not due to sales people until payments have been received.

Commissions can be calculated monthly and paid out either monthly or quarterly.

 
Plans
These plans demonstrate various features of the QCommission product used in the Printing Industry. These plans are not intended to be comprehensive; they demonstrate the suitability of QCommission for similar plans.
 
Sales Rep Plan
Sales reps can be employees or contractors. Commissions are calculated when invoice is generated.
 
Sales Rep Commission
This commission is paid monthly. Sales Rep is paid a flat commission based on list price of job being quoted. If the job is billed at less than the list price, no commissions are due.
Commission rate: 8%
 
Sales Rep Markup Commission
This commission is paid monthly. Sales Rep splits the markup between list price of the job and the actual price billed to the customer. The split is 50/50.
 
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Sr Sales Rep Plan
Commissions are calculated when invoice is generated.
 
Sales Rep Gross Profit Commission
This commission is paid monthly. Sales Rep is paid a commission based on gross profit of the print job. Commission rates vary based on gross margin achieved.
 
 
Sales Rep Bonus
This commission is paid monthly. Sales Rep has a monthly quota of sales to be achieved. Commission rates vary based on achievement against quota.

Payout is calculated for cumulative sales for every month.

 
Graphic Designer Plan
The firm gets a lot of business when graphic designers steer business towards the firm. In those cases, the designer gets a commission.
 
Referral Incentive

The designer is paid an incentive for every referral made. The incentive is paid when the sales order is signed, and for each order.
Referral amount: $250

Incentive is paid monthly.

 
Marketing Agency Plan

Marketing and advertising agencies are main conduits of business to printing firms. For any business brought in by these agencies, the agencies get a commission.

 
Referral Incentive
The agency is paid an incentive for every referral made. The incentive is paid on receipt of revenue for the print job. 

Referral comm. rate: 10% of revenue.

Incentive is paid monthly.

 
Manager Plan
Managers are responsible for managing a set of sales people.
 
Manager Override
Managers get credit for any sales brought in by their team of sales people. They get an override commission on the revenue of the print jobs.
          
Manager Override Commission rate: 1%

This commission is paid monthly.

 
Resources

http://print.rit.edu/research
www.cabb.com
www.napl.org
www.statestreetconsultants.com
www.capv.com
www.npes.org

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