Commission is a top incentive for employees to raise their sales, but how do you structure it?
If your commission isn't structured well, turnover rates may be high due to employee job satisfaction. Start by tracking sales metrics and pulling from what has been realistic in the past.
You could also ask your employees what they want. This is a good option, especially if you have great staff members you want to keep around.
If you are brining in new staff, consider a different path. Forbes suggested, "A heavy focus on commission can sometimes be discouraging for new reps in their first year if you have a longer sales cycle. I always recommend offering the employees a draw or salary for the first year to cover living costs and then transition to a commission when deals start closing."
11 Smart Ways To Structure Your Sales Team's Commission
A commission-based pay structure gives employees an incentive to work hard and strive for more. This is a common model for sales teams, and it allows them to take charge of their earning potential.Read More