Question
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
Answer
Hello there
As someone who has his own business development agency and also advises on Business Development, I will only share how I would feel towards such a proposal.
If we are partners, than it is 15%; and at the start, yes, I expect you to close the sale, as I am learning your product and your closing techniques regarding this product.
I believe your biggest problem is finding the right people; I don't believe you should spend much time on figuring out the perfect compensation plan.
My advice, go with 15% and spend the time in getting the right people and invest in helping them succeed by remaining motivated.
I know, a lot tougher and time consuming than a few percentiles.
