Sales Multiplier Issue

So my company has that policy of applying the sales multiplier and we got two types here.


Firstly : An uplifting multiplier to 1.5% maximum for what was achieved if you exceeded your target with the same percentage your bonus is multiplied as well (as long as it's 101% or above of your target) , that's not a problem .


Secondly : A downsizing multiplier : Which is a massive problem so if your multiplier is below 100% your commission is being impacted as well, let's say you've achieved 50% of your target you're not getting the 50% you've made you're getting only 25% so that's a 50% of the 50% (only half what you sold is being commissioned) which I can see an extremely unfair specially when you know the worst scenario you can get absolutely nothing of what you sold if your multiplier is below 50% of your target.


An example for that you've received 100 calls and your sales percentage is 49% (below 50%) this means that you lost all of the 49 deals you've closed and only to receive your basic salary which is pretty weak with No Commission at all.


Could you share your experience about that and if any other companies are doing the same?


Thanks,

๐Ÿ’ฐ Compensation
4
LordOfWar
Tycoon
4
Blow it up
Sounds very lame. I am extremely suspicious of orgs that have negative strategies without copious support for their team.
Sunbunny31
Politicker
1
Sr Sales Executive ๐Ÿฐ
Exactly. More stick than carrot.
Sunbunny31
Politicker
3
Sr Sales Executive ๐Ÿฐ
This is a first for me.
CuriousFox
WR Officer
3
๐ŸฆŠ
๐Ÿ‘€๐Ÿฟ
Diablo
Politicker
2
Sr. AE
This is super odd. We follow simple calculations - x% below 75, y% between 75-99%, and kicker over 100%

I havenโ€™t seen anything like this before tbh
Maximas
Tycoon
0
Senior Sales Executive
Yeah bro, massively odd.
UserNotFound
Politicker
2
Account Executive
What the hell?! This seems purposefully 1) convoluted 2) volatile

Volatile in that any territory changes have the ability to really screw your ability to earn. Iโ€™d be curious if youโ€™re at a small or (more likely) medium sized company. It seems to me that this structure screams leadership is afraid of offering checks bigger than they can actually afford.
Maximas
Tycoon
0
Senior Sales Executive
Exactly, that's what I'm saying.
jefe
Arsonist
2
๐Ÿ
Negative reinforcement is not a good thing, whether in dog training or sales management.

Seems demotivating and convoluted to me.
Maximas
Tycoon
1
Senior Sales Executive
Totally agree with you.
Pachacuti
Politicker
0
They call me Daddy, Sales Daddy
In a previous company they would take away 50% of your residual commissions if you performed poorly in a quarter. It was a ball breaker. It cause 90% of the sales team to leave, me included.
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