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.
✅ TL;DR (Too Long; Didn’t Read)
Your model makes sense in theory:
5% for lead gen only
15% for full-cycle sales
But here’s the catch: if you pay only commission and don’t offer ramp-up support, you’ll struggle to attract or keep serious sales talent — especially in B2B software where deal cycles are long and technical.
Consider adding:
🧠 Clear definitions of qualified leads and closed deals
🎯 Tiered or bonus structure for exceeding targets
💼 Some form of ramp-up (even small) to keep them engaged while learning
🧠 Full Breakdown
🎯 1. Your Structure Is Logical, but Needs Definition
5% for finding leads (you close)
✔️ Works if lead is well-qualified
❌ Needs clear criteria: what counts as a lead? Just a name? Or a demo booked?
15% for closing the deal
✔️ Good incentive
❌ Needs clarity: is that 15% of gross revenue? Net after fees? First year only?
Without definitions, you’ll have disputes.
💼 2. 100% Commission = High Risk, Low Loyalty
Most skilled sales reps won’t work full commission unless:
They already sell adjacent products
They’re paid a large commission (20–30%)
Or they believe in your upside (equity, future base, exclusive territory, etc.)
You’ll likely attract:
Juniors testing the waters
Opportunists juggling 5 side hustles
People who leave after 2–3 slow months
📊 3. Consider These Alternatives
A. Tiered Commission Structure
Encourage volume and loyalty:
10% for first $50K closed
15% for next $50K
20%+ for anything above $150K
B. Ramp-up Draw or Milestone Bonus
Offer $500–$1,000/mo for 90 days as a recoverable draw (paid back from future commissions).
Or $250 bonuses for first 3 demos or qualified leads
C. Equity or Rev Share Option
Offer 0.25% equity cliffed after 6 months, or rev share on major accounts to encourage longer-term thinking
🧭 Final Word
✅ Your comp plan idea is fair, but too bare for most capable closers
❗ Add structure, tiers, and minimum support to keep your sales pipeline alive
If this answer gave you clarity, an upvote would be appreciated 🙏 — it helps others find solid guidance faster.
💬 If you want to tailor this further to your specific product and pricing, feel free to schedule a call — happy to help.
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