tealbox_guy

Director

I run a performance marketing agency. I'm trying to build a compensation structure for my sales team.

Does anyone here have a recommended compensation structure for a service agency that has monthly recurring revenues from their clients?

Or, could anyone direct me to good resources for this?

Thanks in advance!

💰 Compensation

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poweredbycaffeine

WR Lieutenant

☕️

Do you have experience building compensation plans of any type?

Do you only sell services, or do you also resell software as a component of your engagement like HubSpot, Sprout, Hootsuite, etc?

Are you paid on a retainer, project, or performance basis?

tealbox_guy

Director

@poweredbycaffeinegreat questions.
- Service company that only sells man hours. No products / reselling softwares as of now at least. Though I'd be curious to explore this on another thread

- 75% of our work is paid on retainers (ads management on Google, Meta, LinkedIn)
- 25% of our work in project based - setting up Google Analytics, Google Tag Manager etc. - overall tracking and reporting infrastructure (including dashboards) for businesses.

I've mostly only built compensation structures for my employees so far. We're 25 people at the moment, and all of them have business consultant / data analyst kind of roles and comp structures. Mostly fixed, with a minor portion in variable, contingent upon them delivering value to existing clients.

Sales comp. structures would be a first for me.

Maximas

Tycoon

Senior Sales Executive

Did you try the search bar, it should have multiple threads in that regard, much of luck.

tealbox_guy

Director

@MaximasI'm going to give that a shot. New to the community. Thanks for the direction!

Maximas

Tycoon

Senior Sales Executive

Welcome on board friend.

AnchorPoint

Politicker

Business Coach

There are not a lack of resources available... just make sure that what you decide upon you are able to live with long term. If you are not sure, build into the plan reviews and adjustments quarterly, every 6 months, or yearly. Unexpected change in compensation for the worse will demotivate and escalate disharmony overnight.

tealbox_guy

Director

@AnchorPointfair point. I do think that whatever structure I come up with will need modifications down the line. I'll probably need to add more nuance to the more 'simplistic' first structure that I launch.

I agree here.

detectivegibbles

Politicker

Sales Director

I think there's a few agency members in here that can speak into it.

I was in sales for a start-up that had recurring revenue from clients. Any deal I had that was recurring, I was paid 10% of monthly total.

poweredbycaffeine

WR Lieutenant

☕️

That would translate into recurring retainers (typically monthly or quarterly). However, margins in an agency format can range from stupid fat to stupid thin. It all depends on the COGS and OpEx of this agency.

tealbox_guy

Director

@detectivegibbleswould it be totally out of bounds if I asked you to jump on a call with me next week? 30 mins?

detectivegibbles

Politicker

Sales Director

I'll be traveling next week for work and will be very limited to stuff outside of my 9-5.

DM me with what you're thinking.

suhdude

Opinionated

Sales Rep

What services are you providing to clients (managing paid media, SEO, email list management, etc.)/what's your price point? I worked as a sales rep in the SMMA space for a while so I'm relatively familiar with comp structure in this space.

tealbox_guy

Director

@suhdudeThat's brilliant. I'd love to jump on a call with you, if you'd be up for it as well?

I sell 2 specific servcies:

1. Building data tracking infrastructure for businesses (think GA, GTM, Segment, BigQuery etc.)

2. Run ads (Meta, Google, LinkedIn).

A client can average between $1500 and $5000 a month. The one time projects can be anywhere between $2000 and $20K, depending on the complexity of the projects we're picked up.

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tealbox_guy

I run a performance marketing agency. I'm trying to build a compensation structure for my sales team.

13 comments

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