Commission Model for selling IT Consulting Services

I'm looking at exploring a range of different possibilities for a commission only model for selling IT Consulting services. This is for a company that sells buckets of Professional Services day. Normally a customer signs up for 36-48 PS days over a 3 month period, and if the project goes well they continue to buy more PS days from us. Right now I'm on a decreasing tiered model, meaning, I get 12% of the first month, 11% of the 2nd month, 10% of the 3rd month so on and so forth all the way to 0. Please note this is not a full time job.


I'm looking for opinions on if this is a favorable model in the eyes of other sales professionals or if I have room to make an argument for an indefinite residual commission model. (Thinking something like a 1% or 2% monthly residual model after the decreasing tiered model hits the floor)

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11
saaskicker
Celebrated Contributor
3
Enterprise AE
No this is not favorable in the eyes of sales professionals. Any commission model that goes to 0% stinks, and is not commission, it's volunteering at that points. Flat % for every project, if it goes longer than expected I would expect to get the same, if not more of a % because the project is working.
jefe
Arsonist
0
๐Ÿ
Yea... I do NOT like the shrinking to 0.
braintank
Politicker
2
Enterprise Account Executive
Are you getting paid a % of profits or overall deal?
CuriousFox
WR Officer
1
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Kosta_Konfucius
Politicker
1
Sales Rep
Is this a side hustle? So not a long term role? Or correct me if I am wrong. Also is this more PS or Staff Augmentation? Are you selling the service and recruiting the talent?

If its not a long term role, I would argue for a commission structure that one lump sum. Since you will eventually be leaving money on the table once you stop working for them part time.
0
Retired Sales Professional
I'm going to agree with all that zero is no bueno!
BingoBangoBongo
Good Citizen
0
NA
Do you know their total costs per head/project? Net Payment Terms? Gross Margin? Are you sending one SME onsite? A project team?

Need more details to determine how bad the model is but it's a bad model.

The incentive is frontloaded to win the logo and as RonCo would say "set it and forget it".

Perhaps just say the function, as opposed to software, and we can iron this out quickly.
GDO
Politicker
0
BDM
that's a very peculiar way to get commish. Strange
LambyCorn
Arsonist
0
A mfkn E
I know a cuban guy who has a firm providing IT services and the comission ranged between 3-5% for the first year - no recurring
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