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Sales Management: How to compensate a sales person?
LK
LK
Lyubim Kogan, I don’t teach theory. Only what I survived. answered:

✅ 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.

Talk to Lyubim Upvote • Share
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