What is a Commission Plan?

A commission plan is a system that companies use to pay their sales staff. It is a way of linking employee compensation directly to how much business they generate. In most cases, the more sales an individual makes, the higher their commission will be. This provides employees with an incentive to sell as much as possible and also allows businesses to reward their top performers. Commission plans can vary significantly from one company to another, but they all typically involve some form of percentage-based commission.

Sales Development
What are some tips for a Commission Plan?

1. Make sure you have a clear understanding of your company's goals and objectives.

2. Work with your team to create a plan that is realistic and achievable.

3. Be clear about the roles and responsibilities of each team member.

4. Make sure the plan is flexible and can be adjusted as needed.

5. Set a timeframe for the plan and make sure everyone is aware of it.

6. Have a system in place to track progress and milestones.

7. Celebrate successes and learn from failures.

8. Be prepared to adjust the plan as needed.

9. Keep communication open and honest throughout the process.

What are the benefits of Commission Plans?

Commission plans can help to increase sales by providing employees with an incentive to sell more. When employees are motivated to sell, they are more likely to put forth the extra effort needed to close deals and make sales. In addition, commission plans can also help to improve customer service. By providing employees with a financial incentive to provide excellent customer service, companies and organizations can encourage employees to build strong relationships with customers. Finally, commission plans can also be used to attract new employees. By offering a commission plan, companies and organizations can show potential employees that they are willing to invest in their success.

What are the different types of Commission Plans?

The three types of commission plans are straight commission, draw against commission, and base salary plus commission. In a straight commission plan, salespeople are paid a percentage of their sales. In a draw against commission plan, salespeople are given an advance (or "draw") against their sales; they typically make lower commissions but receive some money up front to help them make sales. In a base salary plus commission plan, salespeople are paid a guaranteed salary plus a commission on their sales.

SalesHive's Mission Is To Make Scaling B2B Lead Generation Easy & Affordable

Founded in 2016, SalesHive has grown from a team of two to now employing hundreds of US-Based sales development reps, while simultaneously building one of the most innovative approaches to modern sales development, all without raising any funding. By combining our highly experienced team and groundbreaking proprietary technology, we’ve booked tens of thousands of meetings for over 200 B2B clients across every major industry.

We built SalesHive on the premise that modern sales development was flawed, and the companies building outsourced programs were only contributing to that. Our unique approach empowers clients to build industry leading Sales Development programs that deliver real results with the assurance of total transparency, flexible month-to-month contracts, and flat-rate pricing.

Explore More  Terms

 Blog Posts


Learn More About

Scaling Lead Generation For 250+ B2B Companies

We are the fastest growing lead generation services company, now that's saying something.
Trusted By
Companies Like You...
B2B Lead Generation

We’ve Set 85,000+ B2B Sales Meetings.

Speak With Our Team To Learn How!

Loading SalesHive API...

Want More Sales Meetings?

Contact us to embark on your journey to meeting heaven.
b2b sales rep climbing latter
No thanks, I'm getting enough leads.
sales development outsourcing and lead generation
Real-Time Alerts

New Meeting Booked

Prospect Company
Prospect Title
Meeting Source