If you are a sales representative with a catchy sales pitch and strong sales skills, then you ought to have high-paying commission from your day’s (or night’s) work, given the usual and most perceptions about sales people who earn commissions. If you are an aspiring sales person who plans and dreams to become successful someday, then it is your time to shine!
As a sales person aspirant, you should be able to at least have a handful of information on how sales people work as well as what kinds of commission they get and how they get it. You can also check out these Sample Agreements that can be useful for you.
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Figuring out and knowing something about what kinds and types of commission there are and its uses and purposes is definitely one step closer to your goal of becoming a sales person. You can also consider checking out some examples of Commission Sales Agreement and Sales Employment Agreements that you may find useful and helpful toward reaching your goals.
So here are kinds of sales commissions and its definitions:
- High Salary, Low Commission – if you are the kind of individual who needs and wants a guaranteed paycheck and does not mind making cold calls, then it is a huge probability that this kind of sales commission is for you. Basically, this kind of sales commission, according to Greg Bennett, is an inside sales on which sales people or representatives are given a customer’s list for them to contact and make a sale. This kind of sales commission commonly provides a high salary with low commission.
- Payment for Individual Sales – if you are the kind of an individual who want to focus and prioritize a direct relationship to the customer and would aim for individual sales and transaction, then this could be the kind of sales commission for you. Also in this kind of sales commission, commission for individual sales will be given.
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- Payment for Territory Volume – if you are a people person and team-oriented fellow, then this kind of sales commission would probably fit you. And since you are more team- and people-oriented, you would excel and do well in a territory wide sales rather than being paid or given commissions doing individual sales. According to Flagg, since it is a sales territory, you have to know first who is your target market and in which territory they are located in to carefully strategize your sales move and basically know what to do and how to go about it when you get there.
- Profit Margin Sharing – in this kind of sales commission, some companies would pay their employees or sales representative a percentage of the profit and these type of companies are usually the ones who sells services. Although, if you decide to get customers a discounted price, the discount would usually come from your paycheck.
- Retail vs. Wholesale – in this kind of sales commission, the company offers commissions based on company net profits. Your commission, value of sales, and bonuses will be also based on the company’s entire corporate team’s effort of delivering the goods and services.
Furthermore, you can also check out these Sales Agency Agreements for free, which you may find handful and interesting.
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