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What is the best salary for a fresh MBA/ Sales?

Sales Compensation: Is 15% with salary, commission and bonuses within reason?

  • I've gotten push back from my finance and operations team on bonuses and commissions to my sales team so I wanted to post this scenario to get feedback: We play weekly sales games for our team and this past week, one of my sales reps hit all bonuses we had for the week, $2000 worth because he brought in $49,000 for the week. He's paid a 10% commission on any sales and a small base salary. With the 10% and the $2000 bonus and his salary, it totals about 15% on the $49,000 he brought in. My position is that he earned every penny and should be rewarded for that but I wanted to get some feedback on whether the bonus and commission percentages are too generous? I'd love to hear some feedback here. Thanks! - Robert

  • Answer:

    It totally depends on the margins on the products/services sold.

John Whelan at Quora Visit the source

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No regrets when someone hits the targets and over performs. I assume he just represents 10%-15% of the total sales force? Or less? and I assume there are others that under performed? I would run an analysis to see if the total sales vs. total compensation expense is in track. If one person deviates from the mean this is fine. And maybe you want it as it will show the route to others. The problem  for me would be if you had 90% of the people reaching those levels. Next time though you can challenge him with a higher target. Not that high though to demotivate him! For more insights: https://salestrip.wordpress.com/wp-admin/

Vangelis Sakelliou

If you can afford it and are happy with the performance and profit margin then it's all good. Treat your sales reps like partners and you are on to a winner.

Ryan Mattock

You may refer to various sources as those from PayScale dot com's Compensation Today blog for commission structure samples. See http://bitly.com/1pmfwz2. On a personal note, you are free to create your own salary and commission structure as you please and if your company can afford it. Whether or not it's too generous shouldn't be the problem as long as your employees are happy to continue performing in terms of sales.

Donald M. Vu

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