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Sales commission structure


Mrdc

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I work in a sales based role and my colleague and I are pretty unhappy with our commission/bonus levels.

 

Am really interested to hear what other people who work in sales think of our system.

We have hit our target for July but we only receive 3% of any sales above our own targets, we don't receive anything for hitting our target which I think is a bit rubbish. Due to a restricted capacity in July due to holidays, we will be lucky to hit a £100 each.

Any feedback be very welcome.

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I don't work in sales but have seen/set a few commission structures.  Usually this is a straight financial calculation, if there were a bonus on hitting targets the target would be higher. 

Restricted capacity in a particular month is a bit hard to swallow though.  Most sales people I know would get around this by sandbagging everything in July to land on August 1st.  A smart thing to do would be to change the structure for the slow months.

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Mine is simple and I think I am very lucky to have it. We get three targets for the year which are independent of each other and we get 10% of our annual salary for each one we hit. The targets are set in June as well making them more realistic to achieve. So I can earn up to 30% of my salary as one lump sum. Rarely get 30% but the chance is there. 

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Being a Sales Director myself it is quite surprising that you are not rewarded for hitting your respective monthly target and only earn once you start exceeding, what sector do you work in if you do not mind me asking?

My team and myself have quarterly rather than monthly targets, and have a set amount of ANP to hit each quarter and part of their annual bonus pot gets allocated for each quarters production, if they hit 100% they get the full amount of that bonus but our plan also rewards over performance so that if they exceed 100% of target then they can still earn bonus albeit at a scaled down level. Your bonus plan only seems to pay once you exceed your target which is unheard of in Financial Services where I work.

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I think every business is different. I used to work in Capital Equipment sales for many years and used to have a 'reasonable' basic salary' and then up to 10% commission on the sales reducing if we discounted. Was never unhappy but no two firms are the same.

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