Help determining sales numbers and salesperson compensation
So I`m writing my forecasting for sales and I`m trying to figure out how many calls and closing ratios in addition to compensation requirements. I`ve posted my questions below and I would love to hear any feedback 1) Selling a $2500 avg sale product with a 3-6 week sales cycle, what commission percentage is appropriate? I`m considering an 8-16% comm structure (the less discount the salesperson sells the product at, the higher of a comm they make) which would make the avg comm around 12.5% (a guess). Salespeople will have some leads to work from but will be expected to generate their own leads primarily. Does this percentage seem appropraite, too generous or too stingy? 2) Base pay required or a draw? Will I limit myself to only finding newbies if I go with a draw?My guesstimations currently are to provide a $2500/mth base salary with the comm structure above along with a 75% salary bonus if the salesperson meets yearly quota. Total comp would be around $75 under this plan given my sales quotas.Any feedback is appreciated!
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