I am in the middle of purchasing a business with a few sales staff. Currently their compensation package is Base Salary + Commission (7% of contract sale). Is this the best and most liked compensation package for sales staff? Their base is $30K-$40K.
Background, this is for a construction company where contracts are relatively large, but not high volume (specially in the winter months). Best performing salesman can easily earn over $120K (based on this years numbers).
I want to find a way to keep the sales staff motived and wanting to generate revenue as the new owner.
Should I offer different options of compensation packages? Should I have sales goals with incentives attached to them? Should I offer higher base, but deduct that if sales aren’t met?
Any advice is greatly appreciated!
I’d see who your best performs under your ownership are and ask them for their opinions.