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15th April 2009 - 10:08

For one thing, keep the compensation simple. Percentages of order values work well in cases like this. Decide if you're doing straight commission or a base plus commission. Try to keep the program incentive based on performance and long term contractual agreements. If you speak with a few of your reps to be surprised how often they might suggest less than more of what you were thinking, at that point a little more will make them “hungry”, watch your bottom line, but value the future volume they’ll produce. Just think about what you need and structure your compensation plan accordingly.