I`ve been wrestling with the issue of creating a fair compensation package for independent sales reps. Below you will find my first draft. If I could get some feedback on what I`ve put together it would be greatly appreciated.
Background: I run an Amateur Poker League in Bars and Taverns. When a new venue is brought on line, their initial out of pocket expense is $100.00 payable at the time the contract is signed. This money goes towards the end of season prize pool. Seasons are 13 weeks in length. Tournaments are held weekly and the tournament hosts collect directly from the establishment after each tournament.
Goal: Good sales people are not easy to find but a lot of individuals know of a half dozen venues that might be interested in our program. A half dozen referals does not make for a salesman. However, one never knows who will blossom into a stellar performer once they get their feet wet. My attempt with the compensation package I`ve developed is to reward the stellar performers over the long haul with a residual income while compensating those that simply aren`t cut out for sales with what amounts to a "bird-dog fee" for their efforts.
Given the above background and goals I`d appreciate feedback on content and clarity of my proposed compensation package.
Utilizing our proven sales system, coupled with your enthusiasim, tenacity and abilitlty to communicate the value of our service to prospective clients you will be able to rapidly build your client base. When your efforts have resulted in 30 active accounts you will qualify for our Account Executive base compensation program.
6 week trial contract - $25.00 per venue
|Venue Count*||Base Compensation||Closing Bonus**||New Account Requirements***|
|30-39||$2,000||Venues > 30 = $25 per||+5 new venues per month|
|40-49||$2,250||Venues > 40 = $25 per||+5 new venues per month|
|50-59||$2,500||Venues > 50 = $25 per||+5 new venues per month|
|60-69||$2,750||Venues > 60 = $25 per||+5 new venues per month|
|70-79||$3,000||Venues > 70 = $25 per||+5 new venues per month|
|80-89||$3,250||Venues > 80 = $25 per||+5 new venues per month|
|90-99||$3,500||Venues > 90 = $25 per||
+5 new venues per month
|100 +||$4,000||Account Executives that reach this level are exempt from the new account requirements as long as they maintain their 100 plus account status.|
* If an Account Excutive`s venue count falls below 30 venues their compensation will be reduced by $500.00 if venue count is 15 thru 29. if the venue count is 10 thru 14, compensation will be reduced by $1,000. Under 10 venues, the Account Executive will no longer qualify for the Base Compensation program until they bring their venue count to 30.
** To qualify for the the Closing Bonus an Account Executive must close a minimum of five venues in a month.
***Account Executives that fail to close five new venues within a two month period will have ten venues converted to house accounts. Account Executives that fail to close five new venues within a three month period will no longer qualify for the base compensation program and all existing venues will be converted to house accounts.
Thank you for your feedback!
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