One of the simplest and most used sales commission structure is variable pay as a percentage of a single sale’s revenue. Imagine your company sells a certain product for $100,000 with a sales commission rate of 5 percent. For each one they sell, your reps would collect $5,000. Another simple sales commission structure is the gross margin plan. These commission models consider the profit of each transaction, including the price of sale and the costs associated with making that sale. The company would then see a $90,000 profit on that deal. It is a good plan to use as you begin to grow your sales team and scale your business.
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