So here comes the perfect pay structure for him. Please refer to the image below.

This helps the company owners not to worry whether the sales guy is giving the true picture of the market or not.
The income structure is divided into two parts one is fixed income (Base Salary) and the other part is directly tied to the amount of sales made (Commision).
Now, As the diagram shows there are three structures available for him to choose depending on the possibility of sales in the market.If he feels that market offers low sales possibility, he will opt for option 'C' where base salary is high but the income tied to sales made is very slight. But if he sees a comparitively greater oppourtunity in the market, he will go for option 'B' because as he would cross sales S1 his income exceeds the one of option 'C'. Similarly, if the market has huge opportunity attached, option 'A' would be the best becase as the sales S2 is crossed this structure provides the maximum income.
So this structures provide minimum security together with a motivation & incentives based commission
So how does it work in your Company??
A) Fixed Income
B) Pure Commision Structured
C) Hybrid Structur (as described above)
hybrid..
ReplyDeleteExcellent Info man..
ReplyDelete