How To Make Sales Staff Salaries

< p > business is growing, and you realize that you can't do everything by yourself, because you have to focus on promoting enterprise growth, so you are planning to hire your first salesperson.

Once you find the right person, you will immediately face the question: how will you develop the salary structure? < /p >

< p > the salary structure of salesmen is a very difficult and important problem. There are many models to choose from.

You can pay 100% of the salary, 100% Commission, or commission, plus other combinations. Each method has its advantages and disadvantages.

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< p > a rule of thumb: Commission can motivate salesmen to work harder, while fixed salary helps to improve employee loyalty.

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< p > before you find the right salary structure, you should weigh several factors: including what type of salesperson you want to hire, the type of product your company sells, your target customer and the length of the sales cycle.

There are many different types of salesmen who are competent for different sales environments.

In short, it all depends on the product you want to sell and who you are going to sell it to.

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< p > when sales are mostly Commission, salespeople often feel the value of themselves.

As a result, they may be more likely to leave your company and take away your customers.

By contrast, the risk of a salesperson who is mainly paid is not so great.

If you give sales staff a major commission, then make a tough non competition clause in the employment contract (non-compete clause).

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< p > < strong > advance advance and its shortcomings < /strong > < /p >

< p > many small businesses will advance advance to the new salesmen according to the future Commission.

In theory, this operation is like a safety net on the seashore. Although the tide hit them, they slowly saw that their feet were all wet.

However, the drawback is that if your salesperson is never prepared to speed up his initiative, he will spend a lot of advance expenses without much effect.

So how will he repay the company? If sales continue to decline, salespeople may resign or be dismissed.

Either way, your company will be in the red.

You will not only lose a lot of advance expenses and employees, but also lose time in training.

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< p > < strong > consider your sales cycle < /strong > < /p >.

< p > bosses often prefer a pay structure based on commission, because it determines employees' income entirely based on sales performance.

But also realize that if your sales cycle is longer, the salary structure based on commission will be less attractive to employees.

A longer sales cycle may make sales staff unable to earn sustained income, so that even the best salesperson will not stay in the company.

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< p > the sales Standard may be the easiest way to measure sales performance, but it will be useless for the extended sales cycle.

In many cases, it is more meaningful to measure the new salesmen's performance with enthusiasm, such as how many phone calls they make, how many suggestions they have made and how to follow up.

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< p > < strong > achieving balance < /strong > < /p >.

< p > for most employers, the basic salary plus commission is the best solution.

How can we achieve an ideal balance between salary and commission? Studies show that the ratio of 50/50 or 60/40 will get the best result.

Of course, any formula and proportion should be suitable for your business or sales cycle.

No matter what plan you choose, you must ensure it is simple and direct.

A complex incentive plan will actually be an obstacle.

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