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Published on: October 2007
Type of content: WHITE PAPER
Format: Adobe Acrobat (.pdf) (117 kb)
Length: 6 pages
Price: FREE

Overview:
This is a key question for any sales manager or business owner contemplating hiring a new sales person. The answer is complex and will vary depending on the unique circumstances of the company involved and the general practices in the industry for that company.

This article presents the considerations that typically go into the determination of the sales commission structure and payment plan. Each sales manager can design a compensation plan based on these considerations but invariably the sales manager is competing for the services of the sales person with other companies in the same industry. So understanding what other companies’ sales commission plans are, would help in ultimately deciding the proper commission structure and payment. Calling other companies in the same industry and doing the research is an important step in deciding the final design.