Why to Ask About Your Commission Plan
Posted: Thu Jan 30, 2025 3:22 am
What is my commissionable value?
Do not leave this to fate. It may seem like you need to be an accountant to understand how to determine your commissionable value, but you do not. You simply need to understand the gross product, your commission rates on products and services (if separate), while deducting applicable sales tax rates.
Example: You sell $100,000 worth of products and $25,000 of services to your favorite new customer for a total of $125,000. With $10,000 of sales taxes the total charged to your customer is $135,000. If you receive 10% commission on products and 20% commission on services you would be due a $15,000 commission check. Of course, these numbers round up nicely, but with a calculator anybody can do this math. This is your livelihood, so get out that calculator on every deal.
Being a salesperson is a challenging profession, but bahrain telegram data it can be a very lucrative way to earn a living.
However, it is exceptionally important to have clarity on how you are rewarded financially. Admit it, you do not spend all day, everyday taking those “NO’s” for fun.
Anybody that is looking to join a new sales team must be crystal clear on how your efforts will be rewarded.
Many commission plans are confusing, so it is especially important that you ask (and re-ask if necessary) to have the commission plan clarified for you.
Even if you are already working as a salesperson and still do not understand your company’s commission plan, ask for clarity.
Do not leave this to fate. It may seem like you need to be an accountant to understand how to determine your commissionable value, but you do not. You simply need to understand the gross product, your commission rates on products and services (if separate), while deducting applicable sales tax rates.
Example: You sell $100,000 worth of products and $25,000 of services to your favorite new customer for a total of $125,000. With $10,000 of sales taxes the total charged to your customer is $135,000. If you receive 10% commission on products and 20% commission on services you would be due a $15,000 commission check. Of course, these numbers round up nicely, but with a calculator anybody can do this math. This is your livelihood, so get out that calculator on every deal.
Being a salesperson is a challenging profession, but bahrain telegram data it can be a very lucrative way to earn a living.
However, it is exceptionally important to have clarity on how you are rewarded financially. Admit it, you do not spend all day, everyday taking those “NO’s” for fun.
Anybody that is looking to join a new sales team must be crystal clear on how your efforts will be rewarded.
Many commission plans are confusing, so it is especially important that you ask (and re-ask if necessary) to have the commission plan clarified for you.
Even if you are already working as a salesperson and still do not understand your company’s commission plan, ask for clarity.