Commission plans

[pmanson]

Hi,

I need to come up with a suggestion to my Boss about how to incentive team members when working on larger clients as a group.

The current structure is (for example) 1 Account Manager works on multiple accounts but moving forward it could be that multiple individuals work on the same account (AD, AM etc).

Couple of options that I can think of:

1. total sales for the period are 100k made up of 25k sold by AM1, 35k by AM2 and the rest as a retainer.

AD gets a % of total sales (say 1%), AMs get 2% of their individual sales

2. All individuals are awarded a % of their total sales (based on delivery) not who sold the project. For example the AD may sell two projects that are then delivered by the 2 AMs.


Any thoughts/experiences? I'm assuming option 1 is the more typical scenario?

Phill

[The Moose]

Do we earn commission if your option is picked?!

[softtop]

I read that a few times and it is hard to make a judgement because there is not enough information to understand what is going on. AD, guessing account director? Add more detail for a response. Initial thought, if no one has overall responsibility in the account then don't expect it to be well managed. It will be seen as tactical for sales and not looked after for the long term.

Edited by softtop on Saturday 1st November 19:36

[Simpo Two]

When I was an account exec the commission was 5% of turnover (ie the sums we invoiced), though it was later changed to 2% of profit. And if we had to raise a credit note it was deducted...