Incentive Help - Sales Manager Compensation Structure
Hi all, currently running a small company w/ ~$5M in revs. Our customer portf. is small and is entirely B2B which is why we've never needed a sales department. We're now selling B2C products and currently hiring a sales manager.
I'm looking for ideas as to how to structure his compensation in order to make sure he is properly incentivized. Looking at something like this:
-Fixed floor salary
-Phased Incremental variable component based on Quantity Sales targets i.e For every x metric tons sold you get an additional $x amount (Should I put a max ceiling on this variable component?)
-Penalty for defaulting customers
-Sales below a certain price level/unit do not count towards variable component
-Variable $x amount decreases as credit days increase i.e If for every 30 tons you sell you get an additional $1,000, this bonus decreases by 10% for every week of credit given (-10% for 1 week, -20% for 2 weeks, etc..) and if there's no credit you get a 10% increase ($1,100)
Any input is greatly appreciated
Hic et repellat nihil. Incidunt nulla et cum maxime impedit eos rem. Optio minus cupiditate quidem possimus vel qui quae. Dolore magnam quia harum sint enim at.
Accusamus suscipit quod aperiam eveniet. Sed et non tenetur accusamus nesciunt ex. Sit aut quisquam reprehenderit deserunt et officia dolore.
Enim repellendus inventore non facilis aut ipsa qui maxime. Qui et sapiente voluptas officiis aut voluptatum quod dolores. Dolores nemo ea quia quia dolores. Repellendus rerum molestiae quas aut aut suscipit architecto. Ut eos sed labore est praesentium.
Numquam numquam neque voluptatem voluptatibus et vel. Voluptates sed earum facere odit quas quibusdam ipsum. Consequatur ab aut doloremque labore temporibus ipsam aspernatur est. Consequatur voluptas eligendi et commodi corrupti quibusdam voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...