AboutLeo Lingham Expertise Any questions around sales, sales planning, sales development,
sales management, sales auditing, sales strategy, salesforce
management, selling skills, sales training , psychology in
selling, etc.
Experience 18 years in working management covering business planning,
strategic planning, marketing and sales management, management
service, organization development etc
plus
24 years in management consulting covering business planning,
strategic planning, business developemnt, business coaching,
marketing, product management etc
Expert: Leo Lingham Date: 4/9/2008 Subject: Sales manager salary and commission
Question Leo, We are a small start up company trying to hire a sales manager to manage local sales reps and handle regional accounts. With base salary, would it be better to pay small portion of all sales or higher portion of his own sales?
Answer TRACY,
BASED ON YOUR BRIEF,
-You have a regional sales manager
-He is responsible for managing a few accounts directly [ himself]
-He is also responsible for managing 'N' number of sales reps.
IN MY EXPERIENCE, WE PAY
-base salary for the sales manager.
-base salary for the sales reps.
-sales reps. get a ''X'' % of their sales value as commission.
-sales manager gets the same ''X'' of his value of sales
PLUS
sales manager also gets 25% of the TOTAL COMMISSION
EARNED BY THE SALES REPS.
to encourage him to manage the sales reps. effectively.
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IN ADDITION, WE ALSO PAY BONUS IF THE TEAM
ACHIEVES THE '' BIG TARGET''.
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EXAMPLE
SALES MANAGER ACHIEVES THE PERFORMANCE,
HIS COMMISSION IS , SAY 10,000 DOLLARS.
