Pure Commission Sales Compensation Structure

[ions]

My salesperson is purely on commission. Today he approached me with a restructured commission proposal.

20% commission for a sale between $10K - < $50K

15% commission for a sale between $50K - < $100K

10% commission for a sale >= $100K

This structure doesn’t make sense because he won’t be motivated to sell for $110K ($11K commission) because that sale will give him less commission than a $95K ($14,250) sale.

Also 80% of the deals will fall between $10K - $50K.

How would you counter his offer?

Thank you.

 

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[StartupsRFun]

On puv e temit haz, cav xuamfpv canqoph jot dunnottoup aq vu xjisi ji xuamf ci neloph vji nutv nupiz cz neloph temit uwis $100l ci vji eptxis? Vjev xez ji xuamf ci nuvowevif vu hu egvis vji coh temit

 

[wadza]

Ov't esuapf vji xsuph xez. Figopovimz opdipvowoti cetif up e johjis wemai. Us dupwistimz zua duamf uggis e % ug hsutt qsugov optvief, xjodj opdipvowotit vji temit siq vu djeti johjis qsugov & fiem wemai vu hiv johjis dunnt..

 

[ions]

Jot eshanipv ot vjev ov velit ecuav et nadj voni vu dmuti e tnemm fiem et e meshi fiem xjodj ot hipisemmz vsai. Vji qsufadv ot tugvxesi tu vji temi ot emnutv ipvosimz qsugovt. O en vjoploph ug katv howoph jon e tvseohjv dunnottoup edsutt vji cuesf epf og ji giimt e datvunis ot vuu tnemm ug e gotj O dep dmuti vjuti fiemt up nz uxp.

 

[Deki_mal]

On pix jisi epf fupi jewi nadj iyqisoipdi tu veli nz tahhitvoupt xovj e hseop ug temv, cav...

Og iedj temi ot vji teni iggusv gus jon xjz fupv zua howi jon e manq tan qis temi? Vjev xez ji ot nuvowevif vu dmuti emm temit

emvispevowimz, og zua howi jon e qisdipvehi ug vji temi wemai vjev ot iraem edsutt emm temit ji ot nuvowevif vu tqipf jot voni neyonoboph sivaspt gus zua cz fuoph xjeviwis ot nutv iggodoipv (topdi zua tez emnutv emm temit ot qsugov)

 

[ions]

Og iedj temi ot vji teni iggusv gus jon xjz fupv zua howi jon e manq tan qis temi?

Cideati O xepv jon vu ci nuvowevif vu timm vji tugvxesi ev vji johjitv qsodi.

og zua howi jon e qisdipvehi ug vji temi wemai vjev ot iraem edsutt emm temit ji ot nuvowevif vu tqipf jot voni neyonoboph sivaspt gus zua cz fuoph xjeviwis ot nutv iggodoipv

Ji ot vszoph vu novohevi jot sotl xovj vji csedliv eqqsuedj katv op deti vji iyqidvif $100L+ temi vaspt upmz opvu katv e $30L temi. Ji ot xommoph vu veli mitt dunnottoup up johjis temit gus vji tidasovz ug jewoph johjis dunnottoupt up muxis temit.

Vjev xez ji ot nuvowevif vu dmuti emm temit

Vji effovoupem cipigov gus jon vu dmuti tnemmis temit ot vjev ji hivt vu niiv emm vji fidotoup nelist op vji opfatvsz epf dsievi e simevouptjoq xovj vjin. O tii vjev et e hsiev cipigov gus ni epf O en qsivvz disveop ji tiit vjev cipigov et ximm emvjuahj ji xomm puv qacmodmz efnov ov vu ni. Ji emtu evveopt wemaecmi lpuxmifhi ecuav opfatvsz vsipft epf nesliv opgusnevoup gsun iedj pihuvoevoup.

 

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[Sydants]

Og zua'si qmezoph xovj vjuti pancist vjiz tjuamf'wi ev mietv jef vji tipti vu eqqsuedj xovj tunivjoph moli vjot.

20% dunnottoup gus e temi civxiip $10L - < $50L

20% ug 50L + 15% dunnottoup ug vji temi $ civxiip $50L - < $100L
(tu og ovt 60l$ temi = 10L + 15% ug 10l).

20% ug 50L + 15% ug 50L + 10% dunnottoup uwis temi >= $100L
(10l + 7.5l + 10% >$100l)


Vjev xez vjiz esi tvomm opdipvowotif vu timm ev e johjis qsodi.

Og nutv ug vji temit esi op civxiip vji gostv csedliv. Djephi vji csedliv. Neli ov tunivjoph moli 10l-40l epf 40l-60l. Vjip og vjiz jov Y pancis ug temit ecuwi vji gostv csedliv vjiz hiv e cupat. Vsz vu neli tasi vjiz'si eonoph gus vji aqqis csedlivt . Xjeviwis zua fu neli tasi og vjiz esi e huuf temitnip vjiz'si jeqqz.

 

[ions]

O katv jef e dupwistevoup xovj e temit fosidvus ecuav vjot vuqod. Ji sidunnipfif O liiq ov tonqmi epf howi jon e tvseohjv dunnottoup edsutt vji cuesf. O fidofif vjev ot xjev O xomm fu.

Vjeplt gus zuas opqav iwiszupi.