• A financial incentive offered to salespeople • Based on the value of sales they generate • Crucial component of sales compensation plans
• Discover various commission structures • Flat-rate • Tiered • Residual • Performance-based commissions
• 100% Commission • A straightforward model • Salespeople earn a fixed percentage of the sale amount • Offers consistency • May not provide enough motivation for high performers
• Commission rates increase as sales targets are met or exceeded • Incentivizes performance • Encourages salespeople to strive for higher targets
• Provide ongoing payments for sales generated over time • Rewards long-term customer relationships • Promotes customer retention
• Commissions to specific metrics or objectives • Such as sales volume, customer satisfaction or new business acquisition • Aligns incentives with company goals • Drives desired behaviors