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Re: Sales Commission idea...From: Shawn Hogan Date: Thursday, February 11, 1999
Time: 12:25:46 pmThot Networks wrote:
> I was thinking about commission sales and I had an idea regarding the
>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...
I'll look into it and see how realistic it is...
- Shawn
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Shawn D. Hogan
President, Data Point Solutions
http://www.data-point.com
(619) 452-3696
ICQ: 8319647
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