11 comments

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CuriousFox
WR Officer
3
🦊
@1nbatopshotfan👀🍸
TennisandSales
Politicker
1
Head Of Sales
every time i see this user name i see "Ibuprofen"......not that you asked 😂
Filth
Politicker
2
Live Filthy or Die Clean
you are not alone.
TennisandSales
Politicker
1
Head Of Sales
😂🙌🙌
AnchorPoint
Politicker
1
Business Coach
ditto
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
That's always a tough situation, especially if you don't know all the facts and figures of the company.

Generally a sales person needs to bring in 5x-10x their base in gross revenue. Depending on the profit margin, the sales person should get 1-10% (again it depends on the profit margin) in commission. A higher base usually equals a smaller commission. So you do the math from there.
Dutch
Personal Narrative
2
Director of Business Development
This is super helpful thanks!!
Kosta_Konfucius
Politicker
0
Sales Rep
Are you saying 1-10% of the profit or rev? Always curious about how they are built out
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
Again, it depends on the profit margin, the revenue model, etc. But it’s been my experience that companies Pay least on overall deal size. Most companies don’t want to divulge what their profit margin is.
But a good company would build the commission structure into the revenue model.
LordOfWar
Tycoon
1
Blow it up
Rev-based is generally easier for everyone.
Valueselling
Member
1
Managing Director
Director of sales, depending on sector or industry, can have the variable or commisions between 30 % ( more traditional or legacy companies) to 50 % ( tech , HW, SW). Therefore, the first thing is to decide which part is going to be commisions. As it is a short sell circle, I would say 40% to 50%. The purpose of a large base salary is typically related with long sell cycles. 50 % for reps, 40 % for directors as they require more time not dedicated to sales ( performance review, coaching, planning, reporting etc). Then, to symplify, I would related to revenue as budget is set, and I would make sure I set accelerators for overachievement ( 2x, 100-120 % of attainment, 3x from 120 % to 150 % ) etc

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