Hi, We are a start-up software company, that sales software for facial image analysis (.e.g., face recognition). I am looking for sales people, and I want to compensate 100% based on their sales. I thought to compensate as follows: 1) If they find potential costumers and I close the final deal, then I give them 5% of sales. 2) If they finalize the contract with the company, then I plan to give them 15% of net sales. Does it makes sense? Thanks
I would be careful in compensating only by commission. This will give you the kind of sales reps you might not want. If you were to invest your time, would you not want to receive some kind of fixed fee for the invested time?
Also, by paying commission based, you are telling the sales guy that you don't know if the product will sell, but that you don't want to be the one risking the time invested.
I'd go for a mix.
Answered 8 years ago