1) Offer competitive base salary
The catch is that the salesperson needs to bring in the revenue to cover it and their benefits before they can receive any bonus, including commission.
2) Pay 2x as much in commission
If reps do pay their base back first and 80%+ of reps hit their numbers, you can afford to pay out 20-22% in commission instead of the standard 10-11%. This makes hitting goals all the more compelling.
3) Pay more for cash upfront deals
Some deals will come in the form of cash and some won’t. To motivate reps toward the former, pay out more for cash upfront deals and less for the rest. This makes pulling in cash top of mind for everyone.
4) Pay upon receipt of cash, not contract signing
This helps align everyone’s interests because you’re offering to pay a pretty hefty sum for high performance while also instilling the value of keeping the company healthy first. Reps might hate the cash-first approach, but they’ll appreciate why you’re doing it.
TIPS FOR THE SALES TEAM
COMPENSATION
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