If you work with vendors and want to make your business highly profitable, it is that sums a good commission structure and a sales team who knows and share your goals.
On the way to encourage your team, probably more than once you have you wondered what the right amount to pay them a commission is. Well as published by Entrepreneur magazine, there is no single answer.
To determine the amount, it is necessary to take into account how commissions are paid in your industry, but you should also consider the following key factors:
- If you are promoting a new product, sales-compensation plan may require greater incentives for the success of this product.
- If sales are based on contacts and relationships from your seller, the commissions should be higher.
- If you work bouquet in a deal takes months, you better pay higher fixed salaries and commissions or bonuses under.
- If your sales people are hunters of new customers or clients growers who already have a greater incentive may be necessary.
Finally, if you want to maximize the performance of your sales department must:
1. Resist and not limit fees. No limits committing a seller, even if your income exceeds soon as owner.
2. All your employees should know the plan you have, so it should be simple and transparent.
3. Try not to change the structure in the functioning of the consequences, even if they face unintended consequences. For example, if you raise fees for a new product and those of previous low, do not be surprised that the already positioned articles may lose momentum.