[PDF] THE ULTIMATE GUIDE TO SALES COMPENSATION

How do I set up a sales commission plan?

Determine the compensation mix The first step to setting up a sales commission plan is to decide on the compensation mix, which describes how much of an employee's pay is the base salary and how much of their pay is sales commissions. For example, you can do a compensation mix where employees get 75% in base salary and the other 30% in commission.

What is a commission agreement template?

The commission sales agent agreement template also plays a detrimental role in this task. A sales commission agreement template helps in affirming the sales commission that each salesperson will receive. The type of commission format sample can vary for different types of sales. However, each sales commission agreement has a few common aims:

What should be included in a sales commission sheet?

While commission sheets will vary based on the type of sales commission structure you’re using, they should include the name of the sales rep, the product or service sold, the revenue or gross profit, the commission percentage, and a formula that will calculate the commissions for each sale.

How do sales commission plans differ for different roles?

The sales commission plans differ for various roles . For example, a sales commission plan for a regional manager would be different than one for an account manager. First, chart down the different roles in your sales team and identify the responsibilities of each role.