Episode 16 – Sales Commission Basics
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Sales commissions are a never-ending source of discussion – and even arguments. There’s a primary reason for this: As a rule, sales people are more motivated by money than other employees.
Sales people want to be paid more, and are willing to work for it. At the same time, business owners want to pay as little as possible and achieve the same sales totals.
We touch on motivations, as well as a few ideas about create commission structures. What’s a fair sales commission? And should it be based on revenue, profit, or something else?
Finally: If you run a very small company, can you afford a sales person at all?