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I was thinking about commission sales and I had an idea regarding the
Sales Commission idea...
From: Mike Oas
Date: Thursday, February 11, 1999
Time: 11:14:52 am
calculation for commissioned sales. I like the idea of placing a limit on
how long a commissioned sale is paid out, but then the salesperson can
easily calculate the maximum amount of income he/she could generate per
month and may get discouraged. If it's set to say 6 months, and the %
commission is $5/month/commission then the salesperson would only ever see x
* $5 * 6 dollars income. So, if sales were 10 customers a month continuous,
the peak income would be $300/month (assuming the sales continued at
10/month).
Perhaps a more lucrative yet protected scheme would be as follows:
Salesperson gets % of sales for life. This is much more of an incentive to
keep selling. Here's the catch. The salesperson needs to make X sales a
month and cannot go Y months without making that quota. Let's say the quota
is 2 sales per month minimum. Therefore, the salesperson sells 10
accounts/month for the first 10 months and then drops off to 3 sales per
month for 10 months. The total income would be higher and there would be
incentive to keep selling. If he/she falls below 2 sales in a month for two
months, no commissions are paid out and it's back to square one. It's more
aggressive in cutting the salesperson off, but the potential for salesperson
income is much higher. And the ISP is protected from paying out for life
because the salesperson needs to keep selling or he/she is cut off.
Shawn, would it be possible to incorporate this kind of sales tracking.
While it is similar to the "include X months on commission report" it offers
some more flexibility. I guess a "minimum sales" field and a "cutoff length
between sales" field would be required for the calculation. What do you
think...
Cheers,
Mike
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