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Creating an Ideal Sales Commission Structure for Your Team

Devising a Sales Commission Structure

As a business owner or sales manager, one of the things that you will need to organize is a sales commission structure. When running a business, you will need to find a satisfactory way of compensating your employees as well as earning higher profits. Business owners and sales managers who are looking to devise a sales commission structure will need to focus on providing their sales representatives with regular motivation and incentives. They need to reward their sales reps for making sales and helping the company reach its goals. With a good commission structure, businesses will be able to retain a team of quality salespeople.

Giving Sales Reps a Percentage

One of the best ways to develop a commission structure is to provide sales reps with a percentage of their sales. It is a good idea to give sales reps between 10% and 30% of all sales revenues that they generate. This will provide them with a decent income as well as give them more motivation to perform at their best every day. By offering a good percentage of sales commissions to sales representatives, you will have the opportunity to boost the morale of your sales reps as well as earn sufficient profits at the same time.

Providing Bonuses

Another good way to structure sales commissions is to provide bonuses on a regular basis. A bonus is an extra amount of money you give a sales representative. These bonuses are often given to reps who reach high levels of performance and make more sales than expected. Offering bonuses will give sales reps plenty of incentive to make more sales and help your company generate more revenue.

Adding Commissions for Performance

Along with offering bonuses to sales reps, you can also give them added commissions. You can increase the amount of commissions they get if they meet certain quotas. For instance, you can offer a 10% commission, and then if a rep makes 10 or more sales per week, their commission is raised to 20% of all sales generated. Providing added commissions will help motivate your sales reps and entice them to stay at your company.

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