Feedback on Sales Compensation plan
Question for sales professionals:
We are new at hiring and working with sales executives/reps, so we would appreciate a sales pros' feedback on the compensation plan draft we've researched and developed. Here it goes:
Industry: Internet Marketing, product: selling site memberships and access to training resources, sale closing time: 1-2 weeks, products price range: $200 - $2,000, the job is virtual
1. The model would be draw vs. commissions + bonuses for desired sales behavior
2. Sales person would get 30% on reaching target sales amount
3. Sales person would have to hit $7,500 (50%) target in sales first month, and $15,000 (100%) in the second and further months to earn 30% commissions
4. This target would mean selling around 10-15 memberships a month
5. There are bonuses like, increased % (to 50%) on reaching $25,000 in sales, $2,000 bonus on 3 consecutive months of reaching or exceeding the targets.
6. The draw against commissions would be $2,000/mo
7. If the person doesn't reach targets after 2 months or owes the company more than $4,000 (2 draws), he/she is out of the team
If you have any feedback or comments, please, drop a line here, we highly appreciate that, thanks!
Marina
You might not like what I say - but I believe it.
Build it, make money, then build some more
Some old school smarts would help - and here's to Rob Toth for his help. Bloody good stuff, even the freebies!