What's The Best Sales Commission Structures for Your Business? Find out now!

What is Sales Commission?

• A financial incentive offered   to salespeople • Based on the value of sales   they generate • Crucial component of sales   compensation plans

Exploring Different Commission Models

• Discover various commission    structures • Flat-rate • Tiered • Residual • Performance-based commissions

Flat-Rate Commission Structure

• 100% Commission • A straightforward model • Salespeople earn a fixed percentage   of the sale amount • Offers consistency • May not provide enough motivation   for high performers

Tiered Commission Structure

Commission rates increase as sales   targets are met or exceeded Incentivizes performance Encourages salespeople to strive for   higher targets

Residual Commission Structure

• Provide ongoing payments for sales   generated over time • Rewards long-term customer   relationships • Promotes customer retention

Performance-Based Commission Structure

• Commissions to specific metrics or   objectives • Such as sales volume, customer   satisfaction or new business   acquisition • Aligns incentives with company   goals • Drives desired behaviors

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