Sales Commissions Earned

Sales Commissions Earned
Are you a salesperson? Are you a business owner who pays
commissions to salespeople? Depending upon your role, you
may have a very different perspective regarding commissions.

Today, many salespeople are not paid a salary, rather they
are paid a percentage of the gross profit earned on each
sale. Some may remain a part of a company benefit program
including health-care plan, expense allowance, 401K,
cafeteria plan, etc..., but are frequently not considered a
salaried employee. Many other salespeople earn a larger
share of the gross profit, hence are responsible for their
own expenses, benefits and tax payments. Most of these are
considered 1099 agents rather than employees.

Whichever applies to your situation certainly influences
your attitude towards commissions earned. I have spoken
with some business owners that consider salespeople a
necessary expense and not an asset. These are typically
somewhat reluctant to write those commission checks each
month, seeing cash going out the door but not certain if
the salespeople are actually worth it. Others see
salespeople as a critically important component to the
success of their company and enjoy writing large commission
checks, knowing that the growth and profitability of their
business hinges upon the performance of motivated and
inspired salespeople.

As a career salesperson, I have strong feelings about
commissions and an important message to all business owners
who utilize salespeople to penetrate new markets and grow
the customer base. Here is my recipe for a win-win pay-plan
that works well for both the business owner and salesperson
alike:

1. Keep the pay plan very simple.

2. Avoid conditional circumstances to generate commission.

3. Salespeople want to earn money. Motivate them.

4. Dangle the carrot. Top performers will go for it.

5. Pay commissions promptly.

6. Inspire salespeople. Let them know that you are anxious
to pay them the big bucks in return for big, profitable
sales performance.

7. Owners: Show appreciation and respect for your
salespeople.

"In effect, the sales rep has created and enhanced the
business cash flow, and is being paid what she is worth to
the organization. Not many other jobs can make that bold
claim in an objective way. Low level sales producers
receive low amount pay days. Bottom producers are not worth
what they are paid as they don't add much revenue or new
customers for the company. Star performers earn their
commissions and bonuses" says Wayne Hurlbert at Blog
Business World.

The end result is that happy, inspired, motivated
salespeople will generate far more sales, more profit and
greater growth for the business, bringing smiles to the
faces of both the business owner and salesperson alike!

----------------------------------------------------
Daniel Sitter, author of both Learning For Profit, and
Superior Selling Skills Mastery, has garnered extensive
experience in sales, training, marketing and personal
development spanning a successful 25 year career.
Experience his blog at http://www.idea-sellers.com