Sales Rep Salary | How To Incentivize Reps To Perform
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- เผยแพร่เมื่อ 19 มี.ค. 2021
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Great stuff! HubSpot does a similar incentive with their team to incentivise LONG TERM commitment with their clients.
Yes!!!
We love this perspective of sales reps and how to incentivize! We are implementing immediately 😎
Thanks!
Love the guest appearence from Connor "Ring Da" Bell... Commission only drives constant hunger for more 💪🏼
Hahaha agreed!
Truth Bro! The best motivators for sales pros IMHO, are hunger, status and recognition of their huge results, and the need to prove the world wrong about something in their past that branded them as a loser. Barbara Corcoran shares about this on some of her TH-cam vids.
Literally as soon as I was thinking about this topic you upload this video💯
I'm watching you 👀
Me too
great video like always
Thank you so much!
Two different scenarios.
1. Commission only is a very conventional method of compensation.
It doesn't work much in modern times due to high inflation rates.
And it can be offered only If a company has a established line of products with a substantial market share and brand equity, attractive business terms and policies then chances stands that products are sellable and only the process of selling has to be followed.
2. Base salary + commission : New aspirants (new companies) into the market without prior introduction of products into the market, zero market knowledge on account of no market servey, no price bench mark, no established market policy and product line for the respective markets.
In this situation a hell of work has to be done to get started. Lot of marketing and promotional activities with frequent market visits and meetings, a lot of resources are required in terms of funds & manhours.
This is right situation for companies to offer base salary + commission.
Particularly in todays economic conditions with ever rising interest rates and inflation.
Base + commission is the best fit compensation for companies looking out to appoint agents and business representative in overseas markets.
A well compensated business representative is required for overseas markets because there are lot of other things apart from merely selling is involved such as doing market survey, product promotions, appointing and setting up sound channel network, develop OEM markets as per standards, understanding and injecting adequate resources as per market matrix and economy of scale, working closely with the regulatory authorities and govt agencies to get the product standards approved, price benchmarking for specific market verticals and product segment, helping companies to align business policies as per the market requirements and norms.
A sales rep or a business rep shouldn't accept a bare commission if the company doest have a established market of is a new entrant into the market.
As the commission only will get wiped out completely on the huge expenses to establish the new product line into the new markets that may require a lot of time to get thru.
More over success or unsuccess of the products majority of the time depends upon the product itself, its quality, its market fit and also mainly the companies marketing / selling policies.
In many situations it almost take a year or a half to understands the market and find that the companies policies or product is a non fit into the market, and by that time the sales rep would heave already spent a hell on money and other resources moving around the markets and meeting prospects to lately understands that the product line in unfit or policies are non aligned.
And no other but the commission only sales rep comes out as a big looser and gets frustrated.
Hoever in this situation the company does not have any thing to loose rather the company gain from a free promotion of the products and market survey to prepare itself to reenter the markets a later stage.
So the companies should either cover the marketing and field expenses to let sales rep make his living thru his hard work in establishing the products and making the company successful in the market or pay him the base salary + commission to let him covef his expenses comfortably.
The better the sales / business rep is compensated the better the yeild with promising results.
I watched the master class which was amazing on how to sale anything! How can I get a copy of the Sales Process diagram?
QUICK QUESTION:
I give my rep 12% commission on cash collected on the call, to incentivize them to close more PIFs
My offer is $5800 and we do either a PIF, split pay, or x3 split...
Should I be giving 8-10% commission on the total revenue generated ($5800) instead? (industry standard)
If the client doesn't follow through with later payments it's risky to go into the red with this.
Let me know man!
I have salary + commission. For outbound and bizdev I'd like to do commission only. Thanks!
If doing commission only, what would you say it's an industry average for a sales rep on a $5-$8k program.
Assuming they don't need to nurture the leads or do the appointment setting (as that's taken care of by someone else) and they just need to attend the class booked in and occassionally follow up.
What's a fair compensation then?
(google says 20-30% is common but that doesn't seem right.. that they'd get a third of gross revenue for closing a warm lead)
I’d say 10% is solid
We do 50/50 base + variable = OTE with accelerators for outperformance.
Are y'all hiring?
Hey just starting out , thinking about commissions . Need some more tips , please reply to this , thank you for your time
Commission only sales jobs are for realtors and people who want to work for crap companies that treat them like disposable commodities. Guys like Ravi will use you to make themselves the money then fire you.
Any legitimate company knows they need to pay a salary to attract quality sales talent. If they pay commission only, they’ll hire anyone with a pulse.
Tell me I’m wrong
A fact
Hey 👋 Ravi love this video are you currently hiring sales reps though?
We are not, thank you though!
You've shared the absolute truth in this video. When building a sales team, if I talk to a high-ticket sales person who wants to join the team, if they even ask about a salary, they immediately strike out all at once, and I'll politely end the call. Real sales pros, will never work for a salary because they know they can earn way more with their skills and the right straight commission compensation structure. Salary is for losers in our game.